Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,500 units; cost $6.60 each.. August 8 Purchased 12,500 units for $6.00 each. August 14 Sold 10,000 units for $12.50 each. August 18 Purchased 7,500 units for $5.20 each. August 25 Sold 9,000 units for $11.50 each. August 28 Purchased 4,500 units for $5.80 each.. August 31 Inventory on hand-8,000 units. 2. 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 Average cost methoc Note: Round "Average Cost per Unit" to 2 decimal places.
Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,500 units; cost $6.60 each.. August 8 Purchased 12,500 units for $6.00 each. August 14 Sold 10,000 units for $12.50 each. August 18 Purchased 7,500 units for $5.20 each. August 25 Sold 9,000 units for $11.50 each. August 28 Purchased 4,500 units for $5.80 each.. August 31 Inventory on hand-8,000 units. 2. 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 Average cost methoc Note: Round "Average Cost per Unit" to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-2,500 units; cost $6.60 each...
August 8 Purchased 12,500 units for $6.00 each.
August 14 Sold 10,000 units for $12.50 each.
August 18 Purchased 7,500 units for $5.20 each.
August 25 Sold 9,000 units for $11.50 each.
August 28 Purchased 4,500 units for $5.80 each..
August 31 Inventory on hand-8,000 units.
2. 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 Average cost method.
Note: Round "Average Cost per Unit" to 2 decimal places.
Transcribed Image Text:2. 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 Average cost method.
Note: Round "Average Cost per Unit" to 2 decimal places.
Perpetual Average
Beginning Inventory
Purchase-August 8
Salo August 14
Purchase August 18:
Sale-August 25
Purchase August 28
Total
Inventory on hand
Number Cost per
of units unit
0
Inventory
Value
$
0
Cost of Goods Sold
Average
Cost per
unit
Number
of units
sold
Cost of
Goods Sold
S
Inventory Balance
Cost per
unit
Number of
units in
inventory
0
0
$
S
Ending
inventory
$
0
0
0
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