CHARITY AND SPONSOR ADS
Shopping Cart
0 items
 

E 8-14 Inventory cost flow methods; perpetual system

E 8-14 Inventory cost flow methods; perpetual system
Click to enlarge
Price: $8.99
Availability: In Stock
Model: A
Average Rating: 5 out of 5 Stars!

INSTANT DOWNLOAD

Solution Guide / Answer Key:

ACCOUNTING

Exercise 8-14 (E8-14) Inventory cost flow methods; perpetual system

[This is a variation of Exercise 8-13 modified to focus on the perpetual inventory system and alternative cost flow methods.]

Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2011:

Aug. 1 Inventory on hand—2,000 units; cost $6.10 each.
8 Purchased 10,000 units for $5.50 each.
14 Sold 8,000 units for $12.00 each.
18 Purchased 6,000 units for $5.00 each.
25 Sold 7,000 units for $11.00 each.
31 Inventory on hand—3,000 units.

Required:
Determine the inventory balance Altira would report in its August 31, 2011, balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods:
1. First-in, first-out (FIFO)
2. Last-in, first-out (LIFO)
3. Average cost

 

FILE: MS WORD

Write Review
Your Name:


Your Review: Note: HTML is not translated!

Rating: Bad            Good

Enter the code in the box below:

There are no additional images for this product.