Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:- **Aug. 1**: Inventory on hand—3,000 units; cost $7.10 each.- **8**: Purchased 15,000 units for $6.50 each.- **14**: Sold 12,000 units for $13.00 each.- **18**: Purchased 9,000 units for $6.00 each.- **25**: Sold 11,000 units for $12.00 each.- **28**: Purchased 5,000 units for $5.80 each.- **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, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using last-in, first-out (LIFO).### Table Details:The table is titled "Perpetual LIFO" and includes the following columns:1. **Number of Units**: Indicates the number of units in various categories.2. **Cost per Unit**: Specifies the cost for each unit of inventory.3. **Cost of Goods Available for Sale**: Calculated by multiplying the number of units by the cost per unit.4. **Cost of Goods Sold - August 14 & August 25**: Lists units sold, their cost per unit, and the total cost of goods sold for those dates.5. **Inventory Balance**: Shows the number of units in ending inventory, their cost per unit, and the ending inventory value.### Breakdown:- **Beginning Inventory**: - **Units**: 3,000 - **Cost per Unit**: $7.10 - **Cost of Goods**: $21,300- **Purchases**: - **August 8**: - **Units**: 15,000 - **Cost per Unit**: $6.50 - **Cost of Goods**: $97,500 - **August 18**: - **Units**: 9,000 - **Cost per Unit**: $6.00 - **Cost of Goods**: $54,000 - **August 28

LIFO stands for Last In First Out which means units purchased in last would be sold first.

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,000 units; cost $7.10 each. 8 Purchased 15,000 units for $6.50 each. 14 Sold 12,000 units for $13.00 each. 18 Purchased 9,000 units for $6.00 each. 25 Sold 11,000 units for $12.00 each. 28 Purchased 5,000 units for $5.80 each. 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, 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 Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual LIFO: Total Cost of Goods Sold Cost Cost Cost of Goods Available for Sale # of units Cost Cost of Goods per unit Cost of Goods Sold # of units # of units in ending Cost inventory Endin # of units per unit per unit per unit Invento sold Sold sold Beg. Inventory 3,000 24 $ 7.10 21,300 2$ 7.10 $ 7.10 7.10 Purchases: August 8 15,000 6.50 97,500 6.50 6.50 6.50 6.00 6.00 6.00 6.00 August 18 9,000 54,000 5.80 5,000 5.8 29,000 5.80 5.80 August 28 Total 32,000 201,800

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4MC