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. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method lote: 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-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. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method lote: Round "Average Cost per Unit" to 2 decimal places.
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.
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.
Inventory on hand
Cost of Goods Sold
Perpetual Average
Number Cost per Inventory
of units unit
Value
Number
of units
sold
Average
Cost per
unit
Cost of
Goods Sold
units in
inventory
Inventory Balance
Number of Cost per
unit
Ending
inventory
Beginning Inventory
Purchase August 8
Sale - August 14
Purchase - August 18
Sale - August 25
Purchase - August 28
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa56ff5d8-ee11-4d43-8e9c-42b824f6a0f4%2Fe9ff56ed-faef-4b9c-99fb-139ece530e3f%2Fs5p4nn_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.
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.
Inventory on hand
Cost of Goods Sold
Perpetual Average
Number Cost per Inventory
of units unit
Value
Number
of units
sold
Average
Cost per
unit
Cost of
Goods Sold
units in
inventory
Inventory Balance
Number of Cost per
unit
Ending
inventory
Beginning Inventory
Purchase August 8
Sale - August 14
Purchase - August 18
Sale - August 25
Purchase - August 28
Total
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