Required information [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.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Required information
[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.
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.
Perpetual Average
Beginning Inventory
Purchase - August 8
Sale - August 14
Purchase - August 18
Sale - August 25
Purchase - August 28
Total
Inventory on hand
Number Cost per Inventory
Value
of units
unit
0
$
0
Cost of Goods Sold
Average
Cost per
unit
Number
of units
sold
Cost of
Goods Sold
$
0
Inventory Balance
Cost per
unit
Number of
units in
inventory
0
0
0
Ending
inventory
$
$
0
0
0
Transcribed Image Text:Required information [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. 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. Perpetual Average Beginning Inventory Purchase - August 8 Sale - August 14 Purchase - August 18 Sale - August 25 Purchase - August 28 Total Inventory on hand Number Cost per Inventory Value of units unit 0 $ 0 Cost of Goods Sold Average Cost per unit Number of units sold Cost of Goods Sold $ 0 Inventory Balance Cost per unit Number of units in inventory 0 0 0 Ending inventory $ $ 0 0 0
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