Astro Corporation Uses the Periodic Inventory System Requirements: 1

Essay

Astro Corporation uses the periodic inventory system. Information related to Astro's inventory at October 31 is given below: $$\begin{array} { | l | l | l | r | } \hline \text { October } 1 & \text { Beginning inventory } & 400 \text { units @ } \$ 10.00 & = \$ 4,000 \\\hline 8 & \text { Purchase } & 800 \text { units @ } \$ 10.40 & = 8,320 \\\hline 16 & \text { Purchase } & 600 \text { units @ } \$ 10.80 & = 6,480 \\\hline 24 & \text { Purchase } & 200 \text { units @ } \$ 11.60 & = \underline { 2,320 } \\\hline & & 2.000 \text { units } & \$ 21,120 \\\hline\end{array}$$ Requirements: 1. Show calculations to determine the ending inventory using the FIFO cost formula if 400 units remain on hand at October 31 2. Show calculations to determine the ending inventory using the average cost formula if 400 units remain on hand at October 31.