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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—2,000 units; cost $5.30 each. 8 Purchased 8,000 units for $5.50 each. 14 Sold 6,000 units for $12.00 each. 18 Purchased 6,000 units for $5.60 each. 25 Sold 7,000 units for $11.00 each. 28 Purchased 4,000 units for $5.80 each. 31 Inventory on hand—7,000 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).

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:     Aug.1 Inventory on hand—2,000 units; cost $5.30 each. 8 Purchased 8,000 units for $5.50 each. 14 Sold 6,000 units for $12.00 each. 18 Purchased 6,000 units for $5.60 each. 25 Sold 7,000 units for $11.00 each. 28 Purchased 4,000 units for $5.80 each. 31 Inventory on hand—7,000 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).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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—2,000 units; cost $5.30 each.
8 Purchased 8,000 units for $5.50 each.
14 Sold 6,000 units for $12.00 each.
18 Purchased 6,000 units for $5.60 each.
25 Sold 7,000 units for $11.00 each.
28 Purchased 4,000 units for $5.80 each.
31 Inventory on hand—7,000 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).

 

Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Cost of Goods Available for Perpetual LIFO: # of # of units # of units in ending inventory # of units Cost per Cost per unit Cost per unit Cost of Goods Sold Cost per unit Cost of units sold Total Cost of Goods Sold Ending Inventory sold unit Goods Sold Sale Beg. Inventory 2,000 $ 5.30 $ 10,600 $ 5.30 $ 5.30 $ 5.30 Purchases: August 8 8,000 5.50 44,000 5.50 5.50 5.50 August 18 6,000 5.60 33,600 5.60 5.60 5.60 August 28 4,000 5.80 23,200 5.80 5.80 5.80 Total 20,000 $ 111,400
Transcribed Image Text:Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Cost of Goods Available for Perpetual LIFO: # of # of units # of units in ending inventory # of units Cost per Cost per unit Cost per unit Cost of Goods Sold Cost per unit Cost of units sold Total Cost of Goods Sold Ending Inventory sold unit Goods Sold Sale Beg. Inventory 2,000 $ 5.30 $ 10,600 $ 5.30 $ 5.30 $ 5.30 Purchases: August 8 8,000 5.50 44,000 5.50 5.50 5.50 August 18 6,000 5.60 33,600 5.60 5.60 5.60 August 28 4,000 5.80 23,200 5.80 5.80 5.80 Total 20,000 $ 111,400
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