Exercise 8-15 (Algo) LIFO; perpetual system [LO8-1, 8-4] Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-3,600 units; cost $7.70 each. August 8 Purchased 18,000 units for $7.10 each. August 14 Sold 14,400 units for $13.60 each. August 18 Purchased 10,800 units for $6.60 each. August 25 Sold 13,400 units for $12.60 each. August 28 Purchased 5,600 units for $5.80 each. August 31 Inventory on hand-10, 200 units. 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 last-in, first-out (LIFO). Perpetual LIFO: Beginning Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Cost per unit 3,600 $7.70 S Number of units 18,000 7.10 10,800 6.60 5,600 5.80 38,000 Cost of Goods Available for Sale S 27,720 127,800 71,280 32,480 259,280 Cost of Goods Sold - August 14 Number of Cost units sold per unit Cost of Goods Sold 0 $ 7.70 S 7.10 6.60 5.80 $ 0 0 0 0 Cost of Goods Sold - August 25 Cost per unit $ 7.70 $ Number of units sold 0 7.10 6.60 5.80 Cost of Goods Sold $ 0 0 Total Cost of Goods Sold $ 0 Inventory Balance Number of units in ending inventory 0 Cost per unit $ 7.70 7.10 6.60 5.80 Ending Inventory $ 0 0
Exercise 8-15 (Algo) LIFO; perpetual system [LO8-1, 8-4] Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-3,600 units; cost $7.70 each. August 8 Purchased 18,000 units for $7.10 each. August 14 Sold 14,400 units for $13.60 each. August 18 Purchased 10,800 units for $6.60 each. August 25 Sold 13,400 units for $12.60 each. August 28 Purchased 5,600 units for $5.80 each. August 31 Inventory on hand-10, 200 units. 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 last-in, first-out (LIFO). Perpetual LIFO: Beginning Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Cost per unit 3,600 $7.70 S Number of units 18,000 7.10 10,800 6.60 5,600 5.80 38,000 Cost of Goods Available for Sale S 27,720 127,800 71,280 32,480 259,280 Cost of Goods Sold - August 14 Number of Cost units sold per unit Cost of Goods Sold 0 $ 7.70 S 7.10 6.60 5.80 $ 0 0 0 0 Cost of Goods Sold - August 25 Cost per unit $ 7.70 $ Number of units sold 0 7.10 6.60 5.80 Cost of Goods Sold $ 0 0 Total Cost of Goods Sold $ 0 Inventory Balance Number of units in ending inventory 0 Cost per unit $ 7.70 7.10 6.60 5.80 Ending Inventory $ 0 0
Intermediate Accounting: Reporting And Analysis
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ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
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![Exercise 8-15 (Algo) LIFO; perpetual system [LO8-1, 8-4]
Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-3,600 units; cost $7.70 each.
August 8
Purchased 18,000 units for $7.10 each.
August 14
Sold 14,400 units for $13.60 each.
August 18 Purchased 10,800 units for $6.60 each.
August 25 Sold 13,400 units for $12.60 each.
August 28 Purchased 5,600 units for $5.80 each.
August 31 Inventory on hand-10, 200 units.
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 last-in, first-out (LIFO).
Perpetual LIFO:
Beginning Inventory
Purchases:
August 8
August 18
August 28
Total
Cost of Goods Available for Sale
Cost
per
unit
3,600 $7.70 $
Number
of units
18,000 7.10
10,800
6.60
5,600
5.80
38,000
Cost of Goods
Available for Sale
$
27,720
127,800
71,280
32,480
259,280
Cost of Goods Sold - August 14
Cost of
Goods Sold
Number of Cost
units sold per unit
0
$ 7.70 $
7.10
6.60
5.80
$
0
0
0
0
Cost of Goods Sold - August 25
Cost
per
unit
Number of
units sold
0
Cost of
Goods Sold
$ 7.70 $
7.10
6.60
5.80
$
0
Total Cost of
Sold
Goods Sold
Goods
0 $
0
Inventory Balance
Number of
units in ending Cost per
inventory
0
Ending
unit Inventory
$ 7.70
7.10
6.60
5.80
$
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd01fce5-4ed6-4e8f-912c-c98978122cab%2F6721a85d-54d9-4d2d-be67-598e1175e76f%2Fet2c4pc_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 8-15 (Algo) LIFO; perpetual system [LO8-1, 8-4]
Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-3,600 units; cost $7.70 each.
August 8
Purchased 18,000 units for $7.10 each.
August 14
Sold 14,400 units for $13.60 each.
August 18 Purchased 10,800 units for $6.60 each.
August 25 Sold 13,400 units for $12.60 each.
August 28 Purchased 5,600 units for $5.80 each.
August 31 Inventory on hand-10, 200 units.
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 last-in, first-out (LIFO).
Perpetual LIFO:
Beginning Inventory
Purchases:
August 8
August 18
August 28
Total
Cost of Goods Available for Sale
Cost
per
unit
3,600 $7.70 $
Number
of units
18,000 7.10
10,800
6.60
5,600
5.80
38,000
Cost of Goods
Available for Sale
$
27,720
127,800
71,280
32,480
259,280
Cost of Goods Sold - August 14
Cost of
Goods Sold
Number of Cost
units sold per unit
0
$ 7.70 $
7.10
6.60
5.80
$
0
0
0
0
Cost of Goods Sold - August 25
Cost
per
unit
Number of
units sold
0
Cost of
Goods Sold
$ 7.70 $
7.10
6.60
5.80
$
0
Total Cost of
Sold
Goods Sold
Goods
0 $
0
Inventory Balance
Number of
units in ending Cost per
inventory
0
Ending
unit Inventory
$ 7.70
7.10
6.60
5.80
$
0
0
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