AFM101 Chapter Notes - Chapter 5: Income Statement, Weighted Arithmetic Mean, Inventory Turnover
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10.
Ferris Company began 2016 with 6,000 units of its principalproduct. The cost of each unit is $6. Merchandise transactions forthe month of January 2016 are as follows:
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Altira Corporation uses a periodic inventory system. Thefollowing information related to its merchandise inventory duringthe month of August 2018 is available:
Aug.1 | Inventory on hand—2,000 units;cost $6.10 each. |
8 | Purchased 10,000 units for $5.50each. |
14 | Sold 8,000 units for $12.00each. |
18 | Purchased 6,000 units for $5.00each. |
25 | Sold 7,000 units for $11.00each. |
31 | Inventory on hand—3,000 units |
Determine the inventory balance Altira would report in itsAugust 31, 2018, balance sheet and the cost of goods sold it wouldreport in its August 2018 income statement using each of thefollowing cost flow methods.
FIFO
LIFO
Average Cost
Determine the inventory balance Altira would report in itsAugust 31, 2018, balance sheet and the cost of goods sold it wouldreport in its August 2018 income statement using the FIFO method.(Round "Cost per Unit" to 2 decimal places.)
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Determine the inventory balance Altira would report in itsAugust 31, 2018, balance sheet and the cost of goods sold it wouldreport in its August 2018 income statement using LIFO method.(Round "Cost per Unit" to 2 decimal places.)
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Determine the inventory balance Altira would report in itsAugust 31, 2018, balance sheet and the cost of goods sold it wouldreport in its August 2018 income statement using Average costmethod. (Round "Average Cost per Unit" to 2 decimal places.)
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22.Altira Corporation uses a perpetual inventory system. Thefollowing transactions affected its merchandise inventory duringthe month of August 2016: |
Aug.1 | Inventory onhand—2,000 units; cost $6.10 each. |
8 | Purchased 10,000units for $5.50 each. |
14 | Sold 8,000 units for$12.00 each. |
18 | Purchased 6,000units for $5.00 each. |
25 | Sold 7,000 units for$11.00 each. |
31 | Inventory onhand—3,000 units. |
Required: |
Determine the inventory balance Altira would report in itsAugust 31, 2016, balance sheet and the cost of goods sold it wouldreport in its August 2016 income statement using each of thefollowing cost flow methods: (Round "Average Cost per Unit"to 2 decimal places.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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