Required information Exercise 8-14 (Static) 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-2,000 units; cost $5.30 each. August 8 Purchased 8,000 units for $5.50 each. August 14 Sold 6,000 units for $12.00 each. August 18 Purchased 6,000 units for $5.60 each. August 25 Sold 7,000 units for $11.00 each. August 28 Purchased 4,000 units for $5.80 each. August 31 Inventory on hand-7,000 units. Exercise 8-14 (Static) Part 1 Required: 1. 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 FIFO method. Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual FIFO: Number Cost per of units unit Cost of Goods Available for Sale Number of units Cost per unit Cost of Goods Sold sold Number Cost per of units sold unit Cost of Goods Sold Total Cost of Goods Sold Number of units in inventory Cost per unit Ending Inventory Beginning Inventory 2,000 $5.30 $ 10,600 2,000 $ 5.30 $ 10,600 0 $ 5.30 $ 0 $ 5.30 $ 0 Purchases: August 8 8,000 5.50 44,000 5.50 5.50 5.50 0 August 18 6,000 5.60 33,600 5.60 0 5.60 5.60 August 28 4,000 5.80 23,200 5.80 5.80 5.80 Total 20,000 $ 111,400 2,000 $ 10,600 0 $ 0 $ 10,600 ° $ 0
Required information Exercise 8-14 (Static) 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-2,000 units; cost $5.30 each. August 8 Purchased 8,000 units for $5.50 each. August 14 Sold 6,000 units for $12.00 each. August 18 Purchased 6,000 units for $5.60 each. August 25 Sold 7,000 units for $11.00 each. August 28 Purchased 4,000 units for $5.80 each. August 31 Inventory on hand-7,000 units. Exercise 8-14 (Static) Part 1 Required: 1. 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 FIFO method. Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual FIFO: Number Cost per of units unit Cost of Goods Available for Sale Number of units Cost per unit Cost of Goods Sold sold Number Cost per of units sold unit Cost of Goods Sold Total Cost of Goods Sold Number of units in inventory Cost per unit Ending Inventory Beginning Inventory 2,000 $5.30 $ 10,600 2,000 $ 5.30 $ 10,600 0 $ 5.30 $ 0 $ 5.30 $ 0 Purchases: August 8 8,000 5.50 44,000 5.50 5.50 5.50 0 August 18 6,000 5.60 33,600 5.60 0 5.60 5.60 August 28 4,000 5.80 23,200 5.80 5.80 5.80 Total 20,000 $ 111,400 2,000 $ 10,600 0 $ 0 $ 10,600 ° $ 0
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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![Required information
Exercise 8-14 (Static) 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-2,000 units; cost $5.30 each.
August 8 Purchased 8,000 units for $5.50 each.
August 14 Sold 6,000 units for $12.00 each.
August 18 Purchased 6,000 units for $5.60 each.
August 25 Sold 7,000 units for $11.00 each.
August 28 Purchased 4,000 units for $5.80 each.
August 31 Inventory on hand-7,000 units.
Exercise 8-14 (Static) Part 1
Required:
1. 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 FIFO method.
Cost of Goods Available for Sale Cost of Goods Sold - August 14
Cost of Goods Sold - August 25
Inventory Balance
Perpetual FIFO:
Number Cost per
of units
unit
Cost of
Goods
Available for
Sale
Number
of units
sold
Cost per
unit
Cost of
Goods Sold
Number
of units
sold
Cost per
unit
Cost of
Goods Sold
Total Cost of
Goods Sold
Number of
units in
inventory
Cost per
unit
Ending
Inventory
Beginning Inventory
2,000 $ 5.30 $
10,600
2,000 $
5.30 $ 10,600
0 $
5.30 $
0
$
5.30 $
Purchases:
August 8
8,000
5.50
44,000
5.50
0
5.50
5.50
0
August 18
6,000
5.60
33,600
5.60
0
5.60
5.60
August 28
4,000
5.80
23,200
5.80
5.80
5.80
Total
20,000
$ 111,400
2,000
$ 10,600
0
$
0
$
10,600
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77ff2a96-543b-4770-bd8f-7777014afad2%2F68e77825-e643-4e23-b03a-f7c2686d0d70%2Fthuoop_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 8-14 (Static) 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-2,000 units; cost $5.30 each.
August 8 Purchased 8,000 units for $5.50 each.
August 14 Sold 6,000 units for $12.00 each.
August 18 Purchased 6,000 units for $5.60 each.
August 25 Sold 7,000 units for $11.00 each.
August 28 Purchased 4,000 units for $5.80 each.
August 31 Inventory on hand-7,000 units.
Exercise 8-14 (Static) Part 1
Required:
1. 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 FIFO method.
Cost of Goods Available for Sale Cost of Goods Sold - August 14
Cost of Goods Sold - August 25
Inventory Balance
Perpetual FIFO:
Number Cost per
of units
unit
Cost of
Goods
Available for
Sale
Number
of units
sold
Cost per
unit
Cost of
Goods Sold
Number
of units
sold
Cost per
unit
Cost of
Goods Sold
Total Cost of
Goods Sold
Number of
units in
inventory
Cost per
unit
Ending
Inventory
Beginning Inventory
2,000 $ 5.30 $
10,600
2,000 $
5.30 $ 10,600
0 $
5.30 $
0
$
5.30 $
Purchases:
August 8
8,000
5.50
44,000
5.50
0
5.50
5.50
0
August 18
6,000
5.60
33,600
5.60
0
5.60
5.60
August 28
4,000
5.80
23,200
5.80
5.80
5.80
Total
20,000
$ 111,400
2,000
$ 10,600
0
$
0
$
10,600
0
$
0
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