Check my work Required information (The following information applies to the questions displayed below.] 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. Required: 1. 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 the FIFO method. 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 FIFO: # of units Cost of Goods Sold # of units sold Cost of Goods Sold # of units in Cost per Cost per unit Cost per unit Total Cost of Cost per # of units units sold Ending Inventory unit Goods Sold unit inventory Sale Beg. Inventory 2,000 $ 5.30 $ 10,600 $ 24 5.30 5.30 5.30 2$ 2$ 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 2$ 111,400 0. $ $ 0 $ $
Check my work Required information (The following information applies to the questions displayed below.] 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. Required: 1. 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 the FIFO method. 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 FIFO: # of units Cost of Goods Sold # of units sold Cost of Goods Sold # of units in Cost per Cost per unit Cost per unit Total Cost of Cost per # of units units sold Ending Inventory unit Goods Sold unit inventory Sale Beg. Inventory 2,000 $ 5.30 $ 10,600 $ 24 5.30 5.30 5.30 2$ 2$ 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 2$ 111,400 0. $ $ 0 $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
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.
Required:
1. 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 the FIFO method.
Cost of Goods Available for Sale
Cost of Goods Sold - August 14
Cost of Goods Sold - August 25
Inventory Balance
Cost of
Perpetual FIFO:
# of
# of units
Cost per
# of units
sold
Cost per
unit
Cost of
Cost of
Total Cost of
Goods Sold
Cost per
# of
Cost per
Ending
Inventory
Goods
units
in
units
unit
Available for
Goods Sold
unit
Goods Sold
unit
sold
inventory
Sale
Beg. Inventory
2,000
$ 5.30
2$
10,600
5.30
2$
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
0 $
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Required information
[The following information applies to the questions displayed below.]
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.
Required:
1. 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 the FIFO method.
Cost of Goods Available for Sale
Cost of Goods Sold - August 14
Cost of Goods Sold - August 25
Inventory Balance
Cost of
Perpetual FIFO:
# of
# of units
Cost per
# of units
sold
Cost per
unit
Cost of
Cost of
Total Cost of
Goods Sold
Cost per
# of
Cost per
Ending
Inventory
Goods
units
in
units
unit
Available for
Goods Sold
unit
Goods Sold
unit
sold
inventory
Sale
Beg. Inventory
2,000
$ 5.30
2$
10,600
5.30
2$
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
0 $
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