Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1Inventory on hand—3,500 units; cost $7.60 each.8Purchased 17,500 units for $7.00 each.14Sold 14,000 units for $13.50 each.18Purchased 10,500 units for $6.80 each.25Sold 13,000 units for $12.50 each.28Purchased 5,500 units for $5.80 each.31Inventory on hand—10,000 units. Required: 1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method.
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1Inventory on hand—3,500 units; cost $7.60 each.8Purchased 17,500 units for $7.00 each.14Sold 14,000 units for $13.50 each.18Purchased 10,500 units for $6.80 each.25Sold 13,000 units for $12.50 each.28Purchased 5,500 units for $5.80 each.31Inventory on hand—10,000 units. Required: 1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Aug.1Inventory on hand—3,500 units; cost $7.60 each.8Purchased 17,500 units for $7.00 each.14Sold 14,000 units for $13.50 each.18Purchased 10,500 units for $6.80 each.25Sold 13,000 units for $12.50 each.28Purchased 5,500 units for $5.80 each.31Inventory on hand—10,000 units.
Required:
1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method.
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