Required information [The following information applies to the questions displayed below.] Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,600 units; cost $7.70 each. 8 Purchased 18,000 units for $7.10 each. 14 Sold 14,400 units for $13.60 each. 18 Purchased 10,800 units for $6.60 each. 25 Sold 13,400 units for $12.60 each. 28 Purchased 5,600 units for $5.80 each. 31 Inventory on hand-10, 200 units. 2. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method. Round "Average Cost per Unit" to 2 decimal places.) Inventory on hand Cost of Goods Sold Inventory Balance Perpetual Average # of units Avg.Cost Cost of # of units in Cost per unit Ending inventory Cost per Inventory Value # of units unit sold per unit Goods Sold inventory Beginning Inventory Purchase - August 8 %24 Sale - August 14 Purchase - August 18 %24 0. Sale - August 25 Purchase - August 28 2$ $ Total %24 %24

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Text Transcription for Educational Website:**

---

**Required Information**

[The following information applies to the questions displayed below.]

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

- **Aug. 1:** Inventory on hand—3,600 units; cost $7.70 each.
- **8:** Purchased 18,000 units for $7.10 each.
- **14:** Sold 14,400 units for $13.60 each.
- **18:** Purchased 10,800 units for $6.60 each.
- **25:** Sold 13,400 units for $12.60 each.
- **28:** Purchased 5,600 units for $5.80 each.
- **31:** Inventory on hand—10,200 units.

---

**2. Perpetual Inventory System Analysis**

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 the Average cost method. (Round "Average Cost per Unit" to 2 decimal places.)

**Table: Perpetual Average Method**

|                  | Inventory on Hand        | Cost of Goods Sold | Inventory Balance       |
|------------------|---------------------------|---------------------|-------------------------|
|                  | # of units | Cost per unit | Inventory Value | # of units sold | Avg. Cost per unit | Cost of Goods Sold | # of units in inventory | Cost per unit | Ending inventory |
|------------------|------------|---------------|-----------------|-----------------|--------------------|------------------|------------------------|---------------|------------------|
| **Beginning Inventory** |            |               |                 |                 |                    |                  |                        |               |                  |
| **Purchase - August 8** |            |               |                 |                 |                    |                  |                        |               |                  |
| **Sale - August 14**    |            |               |                 |                 |                    |                  |                        |               |                  |
| **Purchase - August 18**|            |               |                 |                 |                    |                  |                        |               |                  |
| **Sale - August 25**    |            |               |                 |                 |                    |                  |                        |               |                  |
| **Purchase - August 28**|            |               |
Transcribed Image Text:**Text Transcription for Educational Website:** --- **Required Information** [The following information applies to the questions displayed below.] Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: - **Aug. 1:** Inventory on hand—3,600 units; cost $7.70 each. - **8:** Purchased 18,000 units for $7.10 each. - **14:** Sold 14,400 units for $13.60 each. - **18:** Purchased 10,800 units for $6.60 each. - **25:** Sold 13,400 units for $12.60 each. - **28:** Purchased 5,600 units for $5.80 each. - **31:** Inventory on hand—10,200 units. --- **2. Perpetual Inventory System Analysis** 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 the Average cost method. (Round "Average Cost per Unit" to 2 decimal places.) **Table: Perpetual Average Method** | | Inventory on Hand | Cost of Goods Sold | Inventory Balance | |------------------|---------------------------|---------------------|-------------------------| | | # of units | Cost per unit | Inventory Value | # of units sold | Avg. Cost per unit | Cost of Goods Sold | # of units in inventory | Cost per unit | Ending inventory | |------------------|------------|---------------|-----------------|-----------------|--------------------|------------------|------------------------|---------------|------------------| | **Beginning Inventory** | | | | | | | | | | | **Purchase - August 8** | | | | | | | | | | | **Sale - August 14** | | | | | | | | | | | **Purchase - August 18**| | | | | | | | | | | **Sale - August 25** | | | | | | | | | | | **Purchase - August 28**| | |
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