Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2011 is available:Aug. 1 Inventory on hand-2000 units; cost $6.10 each 8 Purchased 10000 units for $5.50 each 14 Sold 8000 units for $12.00 each 18 Purchased 6000 units for $5.00 each 25 Sold 7000 units for $11.00 each 31 Inventory on hand-3000 unitsRequired: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. FIFO2. LIFO3. Average costE8-14 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-2000 units; cost $6.10 each 8 Purchased 10000 units for $5.50 each 14 Sold 8000 units for $12.00 each 18 Purchased 6000 units for $5.00 each 25 Sold 7000 units for $11.00 each 31 Inventory on hand-3000 unitsRequired:Determine the inventory balance Altira would report in its August 31 2011 balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods:1. FIFO2. LIFO3. Average CostE8-18 Supplemental LIFO disclosures; LIFO reserve: SteelcaseSteelcase Inc. is the global leader in providing furniture for office environments. The company uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report:5 Inventories ($ in millions): February 27 2009 February 29 2008Raw materials 61.3 67.5 Work-in-process 15.9 20.9Finished goods 79.9 87.9 157.1 176.3LIFO reserve (27.2) (29.6) $129.9 $146.7The company s income statement reported cost of goods sold of 2236.7 million fo the fiscal year ended February 27 2009.Required:1. Steelcase adjusts the LIFO reserve at the end of its fiscal year. Prepare the February 27 2009 adjusting entry to make the cost of goods sold adjustment.2. If Steelcase had used FIFO to value its inventories what would cost of goods sold have been for the 2009 fiscal yearP 8-5 Various inventory costing methodsFerris Company began 2011 with 6000 unitsof its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2011 are as follows: Purchases Date of purchase Units Unit Cost* Total Cost Jan. 10 5000 $ 9 $ 45000Jan. 18 6000 10 60000 Totals 11000 105000*Includes purchase price and cost of freight. SalesDate of Sale UnitsJan. 5 3000Jan. 12 2000Jan. 20 4000 Total 90008000 units were on hand at the end of the month.Required: Calculate January s ending inventory and cost of goods sold for the month using each of the following alternatives:1. FIFO periodic system2. LIFO periodic system3. LIFO perpetual system4. Average cost periodic system5. Average cost perpetual system
