Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,700 units; cost $6.80 each. August 8 Purchased 13,500 units for $6.20 each. August 14 Sold 10,800 units for $12.70 each. August 18 Purchased 8,100 units for $5.60 each. August 25 Sold 9,800 units for $11.70 each. August 28 Purchased 4,700 units for $5.80 each.. August 31 Inventory on hand-8,400 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using last-in, first-out (LIFO). Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual LIFO: Number of units Cost per unit Cost of Goods Available for Sale Number of Cost units sold per unit Cost of Goods Sold Number of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold Number of units in ending inventory Cost per unit Ending Inventory Beginning Inventory 2,700 $6.80 $ 18,360 $ 6.80 $ 0 $6.80 $ 0 $ 6.80 Purchases: August 8 13,500 6.20 83,700 6.20 6.20 6.20 August 18 8,100 5.60 45,360 5.60 0 5.60 5.60 0 August 28 4,700 5.80 27,260 5.80 0 5.80 5.80 Total 29,000 $ 174,680 0 0 0 $ 0 $ 0 $
Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,700 units; cost $6.80 each. August 8 Purchased 13,500 units for $6.20 each. August 14 Sold 10,800 units for $12.70 each. August 18 Purchased 8,100 units for $5.60 each. August 25 Sold 9,800 units for $11.70 each. August 28 Purchased 4,700 units for $5.80 each.. August 31 Inventory on hand-8,400 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using last-in, first-out (LIFO). Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual LIFO: Number of units Cost per unit Cost of Goods Available for Sale Number of Cost units sold per unit Cost of Goods Sold Number of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold Number of units in ending inventory Cost per unit Ending Inventory Beginning Inventory 2,700 $6.80 $ 18,360 $ 6.80 $ 0 $6.80 $ 0 $ 6.80 Purchases: August 8 13,500 6.20 83,700 6.20 6.20 6.20 August 18 8,100 5.60 45,360 5.60 0 5.60 5.60 0 August 28 4,700 5.80 27,260 5.80 0 5.80 5.80 Total 29,000 $ 174,680 0 0 0 $ 0 $ 0 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-2,700 units; cost $6.80 each.
August 8 Purchased 13,500 units for $6.20 each.
August 14 Sold 10,800 units for $12.70 each.
August 18 Purchased 8,100 units for $5.60 each.
August 25 Sold 9,800 units for $11.70 each.
August 28 Purchased 4,700 units for $5.80 each..
August 31 Inventory on hand-8,400 units.
Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024,
balance sheet and the cost of goods sold it would report in its August 2024 income statement using last-in, first-out (LIFO).
Cost of Goods Available for Sale
Cost of Goods Sold - August 14
Cost of Goods Sold - August 25
Inventory Balance
Perpetual LIFO:
Number
of units
Cost
per
unit
Cost of Goods
Available for Sale
Number of Cost
units sold per unit
Cost of
Goods Sold
Number of
units sold
Cost
per
unit
Cost of
Goods Sold
Total Cost of
Goods Sold
Number of
units in ending
inventory
Cost per
unit
Ending
Inventory
Beginning Inventory
2,700 $6.80 $
18,360
$ 6.80 $
0
$6.80 $
0
$ 6.80
Purchases:
August 8
13,500
6.20
83,700
6.20
6.20
6.20
August 18
8,100
5.60
45,360
5.60
0
5.60
5.60
0
August 28
4,700
5.80
27,260
5.80
0
5.80
5.80
Total
29,000
$
174,680
0
0
0
$
0 $
0
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education