Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,300 units; cost $7.40 each. 8 Purchased 16,500 units for $6.80 each. 14 Sold 13,200 units for $13.30 each. 18 Purchased 9,900 units for $6.20 each. 25 Sold 12,200 units for $12.30 each. 28 Purchased 5,300 units for $5.80 each. 31 Inventory on hand-9,600 units. 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 last-in, first-out (LIFO). Perpetual LIFO: Beg. Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Cost per unit 3,300 $7.40 S # of units 16,500 6.80 9,900 6.20 5.8 5,300 35,000 Cost of Goods Available for Sale $ 24,420 112,200 61,380 30,740 228,740 Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Cost per unit $7.40 $ # of units sold 0 Cost per unit Cost of Goods Sold $ 7.40 $ 6.80 6.20 5.80 $ 0 0 0 or 0 # of units sold 0 6.80 6.20 5.80 Cost of Goods Sold $ 0 0 Total Cost of Goods Sold $ 0 Inventory Balance # of units in ending inventory 0 Cost per unit $ 7.40 6.80 6.20 5.80 Ending Inventory $ 0 0
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,300 units; cost $7.40 each. 8 Purchased 16,500 units for $6.80 each. 14 Sold 13,200 units for $13.30 each. 18 Purchased 9,900 units for $6.20 each. 25 Sold 12,200 units for $12.30 each. 28 Purchased 5,300 units for $5.80 each. 31 Inventory on hand-9,600 units. 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 last-in, first-out (LIFO). Perpetual LIFO: Beg. Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Cost per unit 3,300 $7.40 S # of units 16,500 6.80 9,900 6.20 5.8 5,300 35,000 Cost of Goods Available for Sale $ 24,420 112,200 61,380 30,740 228,740 Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Cost per unit $7.40 $ # of units sold 0 Cost per unit Cost of Goods Sold $ 7.40 $ 6.80 6.20 5.80 $ 0 0 0 or 0 # of units sold 0 6.80 6.20 5.80 Cost of Goods Sold $ 0 0 Total Cost of Goods Sold $ 0 Inventory Balance # of units in ending inventory 0 Cost per unit $ 7.40 6.80 6.20 5.80 Ending Inventory $ 0 0
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 merchandise inventory during the month of August 2021:
Aug.1 Inventory on hand-3,300 units; cost $7.40 each.
8 Purchased 16,500 units for $6.80 each.
14 Sold 13,200 units for $13.30 each.
18 Purchased 9,900 units for $6.20 each.
25 Sold 12,200 units for $12.30 each.
28 Purchased 5,300 units for $5.80 each.
31 Inventory on hand-9,600 units.
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 last-in, first-out (LIFO).
Perpetual LIFO:
Beg. Inventory
Purchases:
August 8
August 18
August 28
Total
Cost of Goods Available for Sale
Cost
per
unit
3,300 $7.40 $
# of units
16,500 6.80
9,900
6.20
5.8
5,300
35,000
Cost of Goods
Available for Sale
$
24,420
112,200
61,380
30,740
228,740
Cost of Goods Sold - August 14
# of units
sold
0
Cost
per unit
Cost of
Goods Sold
$ 7.40 $
6.80
6.20
5.80
$
0
0
0
0
Cost of Goods Sold - August 25
Cost
per
unit
$7.40 $
# of units
sold
0
6.80
6.20
5.80
Cost of
Goods Sold
$
0
Total Cost of
Goods Sold
0 S
0
Inventory Balance
# of units in
ending
inventory
0
Cost per
unit
$ 7.40
6.80
6.20
5.80
Ending
Inventory
$
0
0
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