Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-3,000 units; cost $7.10 each. August 8 Purchased 15,000 units for $6.50 each. August 14 Sold 12,000 units for $13.00 each. August 18 Purchased 9,000 units for $6.00 each. August 25 Sold 11,000 units for $12.00 each. August 28 Purchased 5,000 units for $5.80 each. August 31 Inventory on hand-9,000 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 Sold - August 25 Cost of Goods Available for Sale Cost of Goods Sold - August 14 Inventory Balance Perpetual FIFO: Number of Cost per units unit Cost of Goods Available for Sale Number of units Cost per unit Cost of Goods Sold sold Number of units sold Cost per unit Cost of Total Cost of Goods Sold Goods Sold Number of units in inventory Cost per unit Ending Inventory Beginning Inventory 3,000 $ 7.10 $ 21,300 os 7.10 0 $ 7.10 $ 이 3,000 $ 7.10 $ 21,300 Purchases: August 8 15,000 6.50 97,500 12,000 6.50 78,000 2,000 6.50 13,000 1,000 6.50 6,500 August 18 9,000 6.00 54,000 이 6.00 이 9,000 6.00 54,000 0 6.00 August 28 5,000 5.80 29,000 0 5.80 0 5.80 5,000 5.80 29,000 Total 32,000 $ 201,800 12,000 $ 78,000 11,000 $ 67,000 $ 145,000 9,000 $ 56,800
Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-3,000 units; cost $7.10 each. August 8 Purchased 15,000 units for $6.50 each. August 14 Sold 12,000 units for $13.00 each. August 18 Purchased 9,000 units for $6.00 each. August 25 Sold 11,000 units for $12.00 each. August 28 Purchased 5,000 units for $5.80 each. August 31 Inventory on hand-9,000 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 Sold - August 25 Cost of Goods Available for Sale Cost of Goods Sold - August 14 Inventory Balance Perpetual FIFO: Number of Cost per units unit Cost of Goods Available for Sale Number of units Cost per unit Cost of Goods Sold sold Number of units sold Cost per unit Cost of Total Cost of Goods Sold Goods Sold Number of units in inventory Cost per unit Ending Inventory Beginning Inventory 3,000 $ 7.10 $ 21,300 os 7.10 0 $ 7.10 $ 이 3,000 $ 7.10 $ 21,300 Purchases: August 8 15,000 6.50 97,500 12,000 6.50 78,000 2,000 6.50 13,000 1,000 6.50 6,500 August 18 9,000 6.00 54,000 이 6.00 이 9,000 6.00 54,000 0 6.00 August 28 5,000 5.80 29,000 0 5.80 0 5.80 5,000 5.80 29,000 Total 32,000 $ 201,800 12,000 $ 78,000 11,000 $ 67,000 $ 145,000 9,000 $ 56,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-3,000 units; cost $7.10 each.
August 8 Purchased 15,000 units for $6.50 each.
August 14 Sold 12,000 units for $13.00 each.
August 18 Purchased 9,000 units for $6.00 each.
August 25 Sold 11,000 units for $12.00 each.
August 28 Purchased 5,000 units for $5.80 each.
August 31 Inventory on hand-9,000 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
Perpetual FIFO:
Cost of
units
Number of Cost per
unit
Goods
Available for
Sale
Number
of units
Cost per
unit
Cost of
Goods Sold
sold
Number
of units
sold
Cost per
unit
Cost of
Goods Sold
Total Cost of
Goods Sold
Number of
units in
inventory
Cost per
unit
Ending
Inventory
3,000 $ 7.10 $
21,300
0 $
7.10
0 $
7.10 $
0
3,000 $ 7.10 $ 21,300
Beginning Inventory
Purchases:
August 8
15,000
6.50
97,500 12,000
6.50
78,000
2,000
6.50
13,000
1,000
6.50
6,500
August 18
9,000
6.00
54,000
0
6.00
0
9,000
6.00
54,000
0
6.00
August 28
5,000
5.80
29,000
0
5.80
0
0
5.80
5,000
5.80
29,000
Total
32,000
$ 201,800 12,000
$
78,000
11,000
$
67,000 $
145,000
9,000
$
56,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa56ff5d8-ee11-4d43-8e9c-42b824f6a0f4%2Fc19eb23e-91bb-4de3-9005-f948df779163%2F4d2qlmg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-3,000 units; cost $7.10 each.
August 8 Purchased 15,000 units for $6.50 each.
August 14 Sold 12,000 units for $13.00 each.
August 18 Purchased 9,000 units for $6.00 each.
August 25 Sold 11,000 units for $12.00 each.
August 28 Purchased 5,000 units for $5.80 each.
August 31 Inventory on hand-9,000 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
Perpetual FIFO:
Cost of
units
Number of Cost per
unit
Goods
Available for
Sale
Number
of units
Cost per
unit
Cost of
Goods Sold
sold
Number
of units
sold
Cost per
unit
Cost of
Goods Sold
Total Cost of
Goods Sold
Number of
units in
inventory
Cost per
unit
Ending
Inventory
3,000 $ 7.10 $
21,300
0 $
7.10
0 $
7.10 $
0
3,000 $ 7.10 $ 21,300
Beginning Inventory
Purchases:
August 8
15,000
6.50
97,500 12,000
6.50
78,000
2,000
6.50
13,000
1,000
6.50
6,500
August 18
9,000
6.00
54,000
0
6.00
0
9,000
6.00
54,000
0
6.00
August 28
5,000
5.80
29,000
0
5.80
0
0
5.80
5,000
5.80
29,000
Total
32,000
$ 201,800 12,000
$
78,000
11,000
$
67,000 $
145,000
9,000
$
56,800
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