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August 1 Inventory on hand-3,300 units; cost $7.40 each. August 8 Purchased 16,500 units for $6.80 each. August 14 Sold 13,200 units for $13.30 each. August 18 Purchased 9,900 units for $6.20 each. August 25 Sold 12,200 units for $12.30 each. August 28 Purchased 5,300 units for $5.80 each. August 31 Inventory on hand-9,600 units. 2. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method. Note: Round "Average Cost per Unit" to 2 decimal places.

August 1 Inventory on hand-3,300 units; cost $7.40 each. August 8 Purchased 16,500 units for $6.80 each. August 14 Sold 13,200 units for $13.30 each. August 18 Purchased 9,900 units for $6.20 each. August 25 Sold 12,200 units for $12.30 each. August 28 Purchased 5,300 units for $5.80 each. August 31 Inventory on hand-9,600 units. 2. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method. Note: Round "Average Cost per Unit" to 2 decimal places.

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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August 1 Inventory on hand-3,300 units; cost $7.40 each. August 8 Purchased 16,500 units for $6.80 each. August 14 Sold 13,200 units for $13.30 each. August 18 Purchased 9,900 units for $6.20 each. August 25 Sold 12,200 units for $12.30 each. August 28 Purchased 5,300 units for $5.80 each. August 31 Inventory on hand-9,600 units. 2. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method. Note: Round "Average Cost per Unit" to 2 decimal places. Answer is complete but not entirely correct. Inventory on hand Cost of Goods Sold Inventory Balance Perpetual Average Cost Number of units per unit Inventory Value Number of units sold Average Cost per unit Cost of Goods Sold Number of units in Cost per unit Ending inventory inventory Beginning Inventory 3,300 $ 7.40 $ 24,420 3,300 $ 7.40 $ 24,420 16,500 $ 6.80 112,200 19,800 $6.80 $ 134,640 Purchase August 8 23,100 $ 159,060 Sale - August 14 13,200 $ 6.90 $ 91,080 6,600 $ 6.90 $ 45,540 9,900 $6.20 61,380 16,500 $6.20 $ 102,300 Purchase August 18 Sale - August 25 12,200 $ 6.48 79,056 23,100 4,300 $ 147,840 $ 6.48 $ 27,864 Purchase August 28 Total 5,300 $ 5.80 30,740 9,600 $ 5.80 $ 55,680 35,000 $ 228,740 $ 170,136 13,900 $ 83,544
Transcribed Image Text:August 1 Inventory on hand-3,300 units; cost $7.40 each. August 8 Purchased 16,500 units for $6.80 each. August 14 Sold 13,200 units for $13.30 each. August 18 Purchased 9,900 units for $6.20 each. August 25 Sold 12,200 units for $12.30 each. August 28 Purchased 5,300 units for $5.80 each. August 31 Inventory on hand-9,600 units. 2. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method. Note: Round "Average Cost per Unit" to 2 decimal places. Answer is complete but not entirely correct. Inventory on hand Cost of Goods Sold Inventory Balance Perpetual Average Cost Number of units per unit Inventory Value Number of units sold Average Cost per unit Cost of Goods Sold Number of units in Cost per unit Ending inventory inventory Beginning Inventory 3,300 $ 7.40 $ 24,420 3,300 $ 7.40 $ 24,420 16,500 $ 6.80 112,200 19,800 $6.80 $ 134,640 Purchase August 8 23,100 $ 159,060 Sale - August 14 13,200 $ 6.90 $ 91,080 6,600 $ 6.90 $ 45,540 9,900 $6.20 61,380 16,500 $6.20 $ 102,300 Purchase August 18 Sale - August 25 12,200 $ 6.48 79,056 23,100 4,300 $ 147,840 $ 6.48 $ 27,864 Purchase August 28 Total 5,300 $ 5.80 30,740 9,600 $ 5.80 $ 55,680 35,000 $ 228,740 $ 170,136 13,900 $ 83,544
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