Exercise 8-14 (Algo) Part 1 equired: Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, alance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method. Perpetual FIFO: Beg. Inventory Purchases: August 8 August 18 August 28 otal Cost of Goods Available for Sale Cost of Goods Available for Sale 3,100 $ 7.20 $ 22,320 # of units 15,500 9,300 5,100 33,000 Cost per unit 6.60 5.80 5.80 102,300 53,940 29,580 $ 208,140 Cost of Goods Sold - August 14 # of units sold Cost per unit $ 7.20 6.60 5.80 5.80 Cost of Goods Sold - August 25 Cost of # of units Goods Sold sold 0 Cost per unit $ 7.20 6.60 5.80 5.80 Cost of Goods Sold Total Cost of Goods Sold Inventory Balance # of units in inventory Cost per unit $ 7.20 6.60 5.80 5.80 Ending Inventory
Exercise 8-14 (Algo) Part 1 equired: Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, alance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method. Perpetual FIFO: Beg. Inventory Purchases: August 8 August 18 August 28 otal Cost of Goods Available for Sale Cost of Goods Available for Sale 3,100 $ 7.20 $ 22,320 # of units 15,500 9,300 5,100 33,000 Cost per unit 6.60 5.80 5.80 102,300 53,940 29,580 $ 208,140 Cost of Goods Sold - August 14 # of units sold Cost per unit $ 7.20 6.60 5.80 5.80 Cost of Goods Sold - August 25 Cost of # of units Goods Sold sold 0 Cost per unit $ 7.20 6.60 5.80 5.80 Cost of Goods Sold Total Cost of Goods Sold Inventory Balance # of units in inventory Cost per unit $ 7.20 6.60 5.80 5.80 Ending Inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system [LO8-1, 8-4]
[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-3,100 units; cost $7.20 each.
8 Purchased 15,500 units for $6.60 each.
14 Sold 12,400 units for $13.10 each.
18 Purchased 9,300 units
for $5.80 each.
25 Sold 11,400 units for $12.10 each.
28 Purchased 5,100 units for $5.80 each.
31 Inventory on hand-9,200 units.
Exercise 8-14 (Algo) Part 1
Total
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.
Perpetual FIFO:
Beg. Inventory
Purchases:
August 8
August 18
August 28
Cost of Goods Available for Sale Cost of Goods Sold - August 14
Cost of
Goods
Available for
Sale
3,100 $7.20 $ 22,320
# of units Cost per
unit
15,500
9,300
5,100
33,000
6.60
5.80
5.80
102,300
53,940
29,580
$ 208,140
# of
units
sold
Cost per
unit
$
7.20
6.60
5.80
5.80
Cost of Goods Sold - August 25
Cost of # of units Cost per
Goods Sold sold
unit
0
$
7.20
6.60
5.80
5.80
Cost of
Goods Sold
Total Cost of
Goods Sold
Inventory Balance
# of units
in
inventory
Cost per
unit
S
7.20
6.60
5.80
5.80
Ending
Inventory](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2Ff6d1f6ac-58d9-43b4-a6ec-f1b70ca7b744%2F2mmwbm_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system [LO8-1, 8-4]
[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-3,100 units; cost $7.20 each.
8 Purchased 15,500 units for $6.60 each.
14 Sold 12,400 units for $13.10 each.
18 Purchased 9,300 units
for $5.80 each.
25 Sold 11,400 units for $12.10 each.
28 Purchased 5,100 units for $5.80 each.
31 Inventory on hand-9,200 units.
Exercise 8-14 (Algo) Part 1
Total
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.
Perpetual FIFO:
Beg. Inventory
Purchases:
August 8
August 18
August 28
Cost of Goods Available for Sale Cost of Goods Sold - August 14
Cost of
Goods
Available for
Sale
3,100 $7.20 $ 22,320
# of units Cost per
unit
15,500
9,300
5,100
33,000
6.60
5.80
5.80
102,300
53,940
29,580
$ 208,140
# of
units
sold
Cost per
unit
$
7.20
6.60
5.80
5.80
Cost of Goods Sold - August 25
Cost of # of units Cost per
Goods Sold sold
unit
0
$
7.20
6.60
5.80
5.80
Cost of
Goods Sold
Total Cost of
Goods Sold
Inventory Balance
# of units
in
inventory
Cost per
unit
S
7.20
6.60
5.80
5.80
Ending
Inventory
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