E8-13 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 - 2,000 units; cost $6.10 each. Aug 8 Purchased 10,000 units for $5.50 each. Aug 14 Sold 8,000 units for $12.00 each. Aug 18 Purchased 60,000 units for $5.00 each. Aug 25 Sold 7,000 units for $11.00 each. Aug 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 E8-14 [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. Aug 8 Purchased 10,000 units for $5.50 each Aug 14 Sold 8,000 units for $12.00 each Aug 18 Purchased 6,000 units for $5.00 each Aug 25 Sold 7,000 units for $11.00 each. Aug 31 Inventory on hand – 3,000 units. Required: Determine the inventory balance Altira would report in its August 31, 2011 balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods: 1. First-in, First-out (FIFO) 2. Last-in, First-out (LIFO) 3. Average Cost E8-18 Steelcase, Inc. is the global leader in providing furniture for office environments. The company uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report: 5. Inventories ($in millions) February 27, 2009 February 29, 2008 Raw Materials $61.3 $67.5 Work-in-Process 15.9 20.9 Finished Goods 79.9 87.9 157.1 176.3 LIFO reserve (27.2) (29.6) $129.9 $146.7 The company’s income statement reported cost of goods sold of $2,236.7 million for 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 year? P 8-5 Ferris Company began 2011 with 6,00o units of 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 5,000 $9 $45,000 Jan. 18 6,000 10 60,000 Totals 11,000 $105,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 2,000 Jan. 20 4,000 Total 9,000 8,000 units were on hand at th ...