! 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 inventory during the month of August 2024: August 1 Inventory on hand-2,200 units%;B cost $6.30 each. August 8 Purchased 11,000 units for $5.70 each. August 14 Sold 8,800 units for $12.20 each. August 18 Purchased 6,600 units for $5.20 each. August 25 Sold 7,800 units for $11.20 each. August 28 Purchased 4,200 units for $5.80 each. August 31 Inventory on hand-7,400 units. Exercise 8-14 (Algo) Part 2 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. Inventory on hand Cost of Goods Sold Perpetual Average Number of units Cost per Inventory unit Value Number of units sold Average Cost per unit Cost of Goods Sold Number of units in inventory Inventory Balance Cost per unit Ending inventory Beginning Inventory Purchase August 8 Sale - August 14 Purchase August 18 Sale - August 25 Purchase - August 28 Total 0 $ 0 0 $ 0 0 $ 0 $ 0 0 $ 0
! 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 inventory during the month of August 2024: August 1 Inventory on hand-2,200 units%;B cost $6.30 each. August 8 Purchased 11,000 units for $5.70 each. August 14 Sold 8,800 units for $12.20 each. August 18 Purchased 6,600 units for $5.20 each. August 25 Sold 7,800 units for $11.20 each. August 28 Purchased 4,200 units for $5.80 each. August 31 Inventory on hand-7,400 units. Exercise 8-14 (Algo) Part 2 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. Inventory on hand Cost of Goods Sold Perpetual Average Number of units Cost per Inventory unit Value Number of units sold Average Cost per unit Cost of Goods Sold Number of units in inventory Inventory Balance Cost per unit Ending inventory Beginning Inventory Purchase August 8 Sale - August 14 Purchase August 18 Sale - August 25 Purchase - August 28 Total 0 $ 0 0 $ 0 0 $ 0 $ 0 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![!
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 inventory during the month of August 2024:
August 1 Inventory on hand-2,200 units%;B cost $6.30 each.
August 8 Purchased 11,000 units for $5.70 each.
August 14 Sold 8,800 units for $12.20 each.
August 18 Purchased 6,600 units for $5.20 each.
August 25 Sold 7,800 units for $11.20 each.
August 28 Purchased 4,200 units for $5.80 each.
August 31 Inventory on hand-7,400 units.
Exercise 8-14 (Algo) Part 2
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.
Inventory on hand
Cost of Goods Sold
Perpetual Average
Number
of units
Cost per Inventory
unit
Value
Number
of units
sold
Average
Cost per
unit
Cost of
Goods Sold
Number of
units in
inventory
Inventory Balance
Cost per
unit
Ending
inventory
Beginning Inventory
Purchase August 8
Sale - August 14
Purchase August 18
Sale - August 25
Purchase - August 28
Total
0
$
0
0
$
0
0
$
0
$
0
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3e59041-b4e1-4ca1-a56e-6722a80ad3a0%2Fafb36243-836c-46a5-8ea4-a95e2b397454%2Fsrr1haz_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 inventory during the month of August 2024:
August 1 Inventory on hand-2,200 units%;B cost $6.30 each.
August 8 Purchased 11,000 units for $5.70 each.
August 14 Sold 8,800 units for $12.20 each.
August 18 Purchased 6,600 units for $5.20 each.
August 25 Sold 7,800 units for $11.20 each.
August 28 Purchased 4,200 units for $5.80 each.
August 31 Inventory on hand-7,400 units.
Exercise 8-14 (Algo) Part 2
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.
Inventory on hand
Cost of Goods Sold
Perpetual Average
Number
of units
Cost per Inventory
unit
Value
Number
of units
sold
Average
Cost per
unit
Cost of
Goods Sold
Number of
units in
inventory
Inventory Balance
Cost per
unit
Ending
inventory
Beginning Inventory
Purchase August 8
Sale - August 14
Purchase August 18
Sale - August 25
Purchase - August 28
Total
0
$
0
0
$
0
0
$
0
$
0
0
$
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education