Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-3,100 units; cost $7.20 each. August 8 Purchased 15,500 units for $6.60 each. August 14 Sold 12,400 units for $13.10 each. August 18 Purchased 9,300 units for $5.80 each. August 25 Sold 11,400 units for $12.10 each. August 28 Purchased 5,100 units for $5.80 each. August 31 Inventory on hand-9,200 units. Required: 1. 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 the FIFO method.
Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-3,100 units; cost $7.20 each. August 8 Purchased 15,500 units for $6.60 each. August 14 Sold 12,400 units for $13.10 each. August 18 Purchased 9,300 units for $5.80 each. August 25 Sold 11,400 units for $12.10 each. August 28 Purchased 5,100 units for $5.80 each. August 31 Inventory on hand-9,200 units. Required: 1. 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 the FIFO method.
Intermediate Accounting: Reporting And Analysis
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Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
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![Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-3,100 units; cost $7.20 each.
August 8 Purchased 15,500 units for $6.60 each.
August 14 Sold 12,400 units for $13.10 each.
August 18 Purchased 9,300 units for $5.80 each.
August 25 Sold 11,400 units for $12.10 each.
August 28 Purchased 5,100 units for $5.80 each.
August 31 Inventory on hand-9,200 units.
Required:
1. 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 the FIFO method.
Cost of Goods Available for Sale
Cost of Goods Sold - August 14
Cost of Goods Sold - August 25
Inventory Balance
Cost of
Perpetual FIFO:
Number of Cost per
units
unit
Goods
Available for
Sale
Number
of units
Cost per
unit
Cost of
Goods Sold
Number
of units
Cost per
unit
Cost of
Goods Sold
Total Cost of
Goods Sold
sold
sold
Number of
units in
Inventory
Cost per
unit
Ending
Inventory
3,100 $7.20 $
22,320
$
7.20
$
7.20
$
7.20
Beginning Inventory
Purchases:
August 8
15,500
6.60
102,300
6.60
6.60
August 18
9,300
5.80
53,940
5.80
5.80
August 28
5,100
5.80
29,580
5.80
5.80
Total
33,000
$ 208,140
6.60
5.80
5.80](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb1f7588-e7d5-4669-93fb-38f498dfa5f2%2F34613455-457a-468e-be39-6dc47ca57328%2Fxull55_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-3,100 units; cost $7.20 each.
August 8 Purchased 15,500 units for $6.60 each.
August 14 Sold 12,400 units for $13.10 each.
August 18 Purchased 9,300 units for $5.80 each.
August 25 Sold 11,400 units for $12.10 each.
August 28 Purchased 5,100 units for $5.80 each.
August 31 Inventory on hand-9,200 units.
Required:
1. 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 the FIFO method.
Cost of Goods Available for Sale
Cost of Goods Sold - August 14
Cost of Goods Sold - August 25
Inventory Balance
Cost of
Perpetual FIFO:
Number of Cost per
units
unit
Goods
Available for
Sale
Number
of units
Cost per
unit
Cost of
Goods Sold
Number
of units
Cost per
unit
Cost of
Goods Sold
Total Cost of
Goods Sold
sold
sold
Number of
units in
Inventory
Cost per
unit
Ending
Inventory
3,100 $7.20 $
22,320
$
7.20
$
7.20
$
7.20
Beginning Inventory
Purchases:
August 8
15,500
6.60
102,300
6.60
6.60
August 18
9,300
5.80
53,940
5.80
5.80
August 28
5,100
5.80
29,580
5.80
5.80
Total
33,000
$ 208,140
6.60
5.80
5.80
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