Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1Inventory on hand—2,500 units; cost $6.60 each.8Purchased 12,500 units for $6.00 each.14Sold 10,000 units for $12.50 each.18Purchased 7,500 units for $5.20 each.25Sold 9,000 units for $11.50 each.28Purchased 4,500 units for $5.80 each.31Inventory on hand—8,000 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).

Name: Altira Corporation provides the following information related to its m
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Description: Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1Inventory on hand—2,500 units; cost $6.60 each.8Purchased 12,500 units for $6.00 each.14Sold 10,000 units for $12.50 eac

LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell out first. At the end of year we assumes that the latest inventory is sell-out and oldest inventory is pending in the ending stock.Particulars No. of Units Cost per unit Total Value Aug. 18 Purchase 7,500 $5.20 $39,000 Aug. 8 Purchases (10000+9000-7500 units) 11,500 $6.00 $69,000 Cost of goods sold (LIFO method) $108,000Particulars No. of Units Cost per unit Total Value Aug.1 Inventory 2500 $6.60 $16,500 Aug. 8 Purchases (12500-11500 units) 1000 $6.00 $6,000 Aug. 28 Purchases 4,500 $5.80 $26,100 Ending inventory (LIFO method) $48,600

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:


Aug.1	Inventory on hand—2,500 units; cost $6.60 each.
8	Purchased 12,500 units for $6.00 each.
14	Sold 10,000 units for $12.50 each.
18	Purchased 7,500 units for $5.20 each.
25	Sold 9,000 units for $11.50 each.
28	Purchased 4,500 units for $5.80 each.
31	Inventory on hand—8,000 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).

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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