Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,600 units; cost $6.70 each. August 8 Purchased 13,000 units for $6.10 each. August 14 Sold 10,400 units for $12.60 each. August 18 Purchased 7,800 units for $5.60 each. August 25 Sold 9,400 units for $11.60 each. August 28 Purchased 4,600 units for $5.80 each. August 31 Inventory on hand-8,200 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 Cost of units sold per unit 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 2,600 $6.70 $ 17,420 $ 6.70 $6.70 $ 6.70 Purchases: August 8 13,000 6.10 79,300 6.10 6.10 August 18 7,800 5.60 43,680 5.60 5.60 August 28 Total 4,600 28,000 5.80 26,680 5.80 5.80 $ 167,080 6.10 5.60 5.80
Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,600 units; cost $6.70 each. August 8 Purchased 13,000 units for $6.10 each. August 14 Sold 10,400 units for $12.60 each. August 18 Purchased 7,800 units for $5.60 each. August 25 Sold 9,400 units for $11.60 each. August 28 Purchased 4,600 units for $5.80 each. August 31 Inventory on hand-8,200 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 Cost of units sold per unit 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 2,600 $6.70 $ 17,420 $ 6.70 $6.70 $ 6.70 Purchases: August 8 13,000 6.10 79,300 6.10 6.10 August 18 7,800 5.60 43,680 5.60 5.60 August 28 Total 4,600 28,000 5.80 26,680 5.80 5.80 $ 167,080 6.10 5.60 5.80
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-2,600 units; cost $6.70 each.
August 8 Purchased 13,000 units for $6.10 each.
August 14 Sold 10,400 units for $12.60 each.
August 18 Purchased 7,800 units for $5.60 each.
August 25 Sold 9,400 units for $11.60 each.
August 28 Purchased 4,600 units for $5.80 each.
August 31 Inventory on hand-8,200 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
units sold
Cost
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
2,600
$6.70 $
17,420
$6.70
$6.70
$
6.70
Purchases:
August 8
13,000
6.10
79,300
6.10
6.10
August 18
7,800 5.60
43,680
5.60
5.60
August 28
4,600 5.80
26,680
5.80
5.80
Total
28,000
$
167.080
6.10
5.60
5.80
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