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-2,800 units; cost $6.90 each. August 8 Purchased 14,000 units for $6.30 each. August 14 Sold 11,200 units for $12.80 each. August 18 Purchased 8,400 units for $5.80 each. August 25 Sold 10,200 units for $11.80 each. August 28 Purchased 4,800 units for $5.80 each. August 31 Inventory on hand-8,600 units. 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 of Cost per units unit Cost of Goods Available for 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 Sale Number of units in inventory Cost per unit Ending Inventory Beginning Inventory 2,800 $ 6.90 $ 19,320 $ 6.90 $ 6.90 $ 0 $ 6.90 $ 0 Purchases: August 8 14,000 6.30 88,200 6.30 6.30 6.30 0 August 18 8,400 5.80 48,720 5.80 0 5.80 5.80 August 28 4,800 5.80 27,840 5.80 0 5.80 5.80 Total 30,000 $ 184,080 0 $ 0 0 $ 0 $ 0 0 $ 0
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-2,800 units; cost $6.90 each. August 8 Purchased 14,000 units for $6.30 each. August 14 Sold 11,200 units for $12.80 each. August 18 Purchased 8,400 units for $5.80 each. August 25 Sold 10,200 units for $11.80 each. August 28 Purchased 4,800 units for $5.80 each. August 31 Inventory on hand-8,600 units. 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 of Cost per units unit Cost of Goods Available for 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 Sale Number of units in inventory Cost per unit Ending Inventory Beginning Inventory 2,800 $ 6.90 $ 19,320 $ 6.90 $ 6.90 $ 0 $ 6.90 $ 0 Purchases: August 8 14,000 6.30 88,200 6.30 6.30 6.30 0 August 18 8,400 5.80 48,720 5.80 0 5.80 5.80 August 28 4,800 5.80 27,840 5.80 0 5.80 5.80 Total 30,000 $ 184,080 0 $ 0 0 $ 0 $ 0 0 $ 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
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
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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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-2,800 units; cost $6.90 each.
August 8 Purchased 14,000 units for $6.30 each.
August 14 Sold 11,200 units for $12.80 each.
August 18 Purchased 8,400 units for $5.80 each.
August 25 Sold 10,200 units for $11.80 each.
August 28 Purchased 4,800 units for $5.80 each.
August 31 Inventory on hand-8,600 units.
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 of Cost per
units unit
Cost of
Goods
Available for
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
Sale
Number of
units in
inventory
Cost per
unit
Ending
Inventory
Beginning Inventory
2,800 $ 6.90
$
19,320
$
6.90
$
6.90 $
0
$
6.90
$
0
Purchases:
August 8
14,000
6.30
88,200
6.30
6.30
6.30
0
August 18
8,400
5.80
48,720
5.80
0
5.80
5.80
August 28
4,800
5.80
27,840
5.80
0
5.80
5.80
Total
30,000
$ 184,080
0
$
0
0
$
0
$
0
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febd57753-77a2-4d5e-8b8e-ab91d7ce9926%2F6c2f2225-ced3-4f66-92d1-55c267621cfb%2Fb2j83ak_processed.png&w=3840&q=75)
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-2,800 units; cost $6.90 each.
August 8 Purchased 14,000 units for $6.30 each.
August 14 Sold 11,200 units for $12.80 each.
August 18 Purchased 8,400 units for $5.80 each.
August 25 Sold 10,200 units for $11.80 each.
August 28 Purchased 4,800 units for $5.80 each.
August 31 Inventory on hand-8,600 units.
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 of Cost per
units unit
Cost of
Goods
Available for
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
Sale
Number of
units in
inventory
Cost per
unit
Ending
Inventory
Beginning Inventory
2,800 $ 6.90
$
19,320
$
6.90
$
6.90 $
0
$
6.90
$
0
Purchases:
August 8
14,000
6.30
88,200
6.30
6.30
6.30
0
August 18
8,400
5.80
48,720
5.80
0
5.80
5.80
August 28
4,800
5.80
27,840
5.80
0
5.80
5.80
Total
30,000
$ 184,080
0
$
0
0
$
0
$
0
0
$
0
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