Itira Corporation provides the following information related to its merchandise inventory during the month of August Aug.1 Inventory on hand-2,400 units; cost $6.50 each. 8 Purchased 12,000 units for $5.90 each. 14 Sold 9,600 units for $12.40 each. 18 Purchased 7,200 units for $5.40 each. 25 Sold 8,600 units for $11.40 each. 28 Purchased 4,400 units for $5.80 each. 31 Inventory on hand-7,800 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). Perpetual LIFO: Beg. Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Cost per unit 2,400 $6.50 $ # of units 12,000 7,200 4,400 26,000 5.90 5.40 5.8 Cost of Goods Available for Sale $ 15,600 70,800 38,880 25,520 150,800 Cost of Goods Sold - August 14 # of units sold 0 Cost per unit Cost of Goods Sold $ 6.50 $ 5.90 5.40 5.80 S 0 0 0 0 Cost of Goods Sold - August 25 Cost per unit $6.50 $ # of units sold 0 5.90 5.40 5.80 Cost of Goods Sold $ 0 Total Cost of Goods Sold 0 $ 0 Inventory Balance # of units in ending inventory 0 Cost per unit $ 6.50 5.90 5.40 5.80 Ending Inventory $ 0 0
Itira Corporation provides the following information related to its merchandise inventory during the month of August Aug.1 Inventory on hand-2,400 units; cost $6.50 each. 8 Purchased 12,000 units for $5.90 each. 14 Sold 9,600 units for $12.40 each. 18 Purchased 7,200 units for $5.40 each. 25 Sold 8,600 units for $11.40 each. 28 Purchased 4,400 units for $5.80 each. 31 Inventory on hand-7,800 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). Perpetual LIFO: Beg. Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Cost per unit 2,400 $6.50 $ # of units 12,000 7,200 4,400 26,000 5.90 5.40 5.8 Cost of Goods Available for Sale $ 15,600 70,800 38,880 25,520 150,800 Cost of Goods Sold - August 14 # of units sold 0 Cost per unit Cost of Goods Sold $ 6.50 $ 5.90 5.40 5.80 S 0 0 0 0 Cost of Goods Sold - August 25 Cost per unit $6.50 $ # of units sold 0 5.90 5.40 5.80 Cost of Goods Sold $ 0 Total Cost of Goods Sold 0 $ 0 Inventory Balance # of units in ending inventory 0 Cost per unit $ 6.50 5.90 5.40 5.80 Ending Inventory $ 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 8-15 (Algo) LIFO; perpetual system [LO8-1, 8-4]
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Aug.1 Inventory on hand-2,400 units; cost $6.50 each.
8 Purchased 12,000 units for $5.90 each.
14 Sold 9,600 units for $12.40 each.
18 Purchased 7,200 units for $5.40 each.
25 Sold 8,600 units for $11.40 each.
28 Purchased 4,400 units for $5.80 each.
31 Inventory on hand-7,800 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).
Perpetual LIFO:
Beg. Inventory
Purchases:
August 8
August 18
August 28
Total
Cost of Goods Available for Sale
Cost
per
unit
2,400 $ 6.50 $
# of units
12,000 5.90
7,200
5.40
5.8
4,400
26,000
Cost of Goods
Available for Sale
$
15,600
70,800
38,880
25,520
150,800
Cost of Goods Sold - August 14
# of units
sold
0
Cost of
Cost
per unit Goods Sold
$ 6.50 $
5.90
5.40
5.80
S
0
0
0
0
Cost of Goods Sold - August 25
Cost
per
unit
$ 6.50 $
# of units
sold
+
0
5.90
5.40
5.80
Cost of
Goods Sold
$
0
Total Cost of
Goods Sold
0 S
0
Inventory Balance
# of units in
ending
inventory
0
Cost per
unit
$ 6.50
5.90
5.40
5.80
Ending
Inventory
S
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1682e96f-9b6b-44ee-b106-5a69f286cdf1%2F4b019f72-2cd4-41b0-9a23-e7986b317a34%2Fnbfslpu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:S
Exercise 8-15 (Algo) LIFO; perpetual system [LO8-1, 8-4]
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Aug.1 Inventory on hand-2,400 units; cost $6.50 each.
8 Purchased 12,000 units for $5.90 each.
14 Sold 9,600 units for $12.40 each.
18 Purchased 7,200 units for $5.40 each.
25 Sold 8,600 units for $11.40 each.
28 Purchased 4,400 units for $5.80 each.
31 Inventory on hand-7,800 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).
Perpetual LIFO:
Beg. Inventory
Purchases:
August 8
August 18
August 28
Total
Cost of Goods Available for Sale
Cost
per
unit
2,400 $ 6.50 $
# of units
12,000 5.90
7,200
5.40
5.8
4,400
26,000
Cost of Goods
Available for Sale
$
15,600
70,800
38,880
25,520
150,800
Cost of Goods Sold - August 14
# of units
sold
0
Cost of
Cost
per unit Goods Sold
$ 6.50 $
5.90
5.40
5.80
S
0
0
0
0
Cost of Goods Sold - August 25
Cost
per
unit
$ 6.50 $
# of units
sold
+
0
5.90
5.40
5.80
Cost of
Goods Sold
$
0
Total Cost of
Goods Sold
0 S
0
Inventory Balance
# of units in
ending
inventory
0
Cost per
unit
$ 6.50
5.90
5.40
5.80
Ending
Inventory
S
0
0
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