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-2,800 units; cost $6.90 each. 8 Purchased 14,000 units for $6.30 each. 14 Sold 11, 200 units for $12.80 each. 18 Purchased 8,400 units for $5.80 each. 25 Sold 10, 200 units for $11.80 each. 28 Purchased 4,800 units for $5.80 each. 31 Inventory on hand-8,600 units. equired: Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, alance sheet and the cost of goods sold it would report in its August 2021 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 Cost of Goods Available for Sale Perpetual FIFO: # of units # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per sold Cost of Goods Sold Cost per unit Ending Inventory Total Cost of in unit Goods Sold inventory Beg. Inventory 2,800 $ 6.90 $ 19.320 $ 6.90 6.90 $ $ 6.90 $ Purchases: August 8 14,000 6.30 88,200 6.30 6.30 6.30 August 18 8,400 5.80 48,720 5.80 5.80 5.80 August 28 Total 4,800 5.80 27,840 5.80 5.80 5.80 30.000 184.080
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-2,800 units; cost $6.90 each. 8 Purchased 14,000 units for $6.30 each. 14 Sold 11, 200 units for $12.80 each. 18 Purchased 8,400 units for $5.80 each. 25 Sold 10, 200 units for $11.80 each. 28 Purchased 4,800 units for $5.80 each. 31 Inventory on hand-8,600 units. equired: Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, alance sheet and the cost of goods sold it would report in its August 2021 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 Cost of Goods Available for Sale Perpetual FIFO: # of units # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per sold Cost of Goods Sold Cost per unit Ending Inventory Total Cost of in unit Goods Sold inventory Beg. Inventory 2,800 $ 6.90 $ 19.320 $ 6.90 6.90 $ $ 6.90 $ Purchases: August 8 14,000 6.30 88,200 6.30 6.30 6.30 August 18 8,400 5.80 48,720 5.80 5.80 5.80 August 28 Total 4,800 5.80 27,840 5.80 5.80 5.80 30.000 184.080
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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-2,800 units; cost $6.90 each.
8 Purchased 14,000 units for $6.30 each.
14 Sold 11, 200 units for $12.80 each.
18 Purchased 8,400 units for $5.80 each.
25 Sold 10, 200 units for $11.80 each.
28 Purchased 4,800 units for $5.80 each.
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, 2021,
balance sheet and the cost of goods sold it would report in its August 2021 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
Cost of
Goods
Available for
Perpetual FIFO:
Cost per
unit
# of
units
sold
Cost per
unit
Cost of
Goods Sold
# of units Cost per
sold
Cost of
Goods Sold
Total Cost of
Goods Sold
# of units
in
inventory
Cost per
unit
Ending
Inventory
# of units
unit
Sale
Beg. Inventory
2,800 $ 6.90 $
19,320
$
6.90
$
6.90
$
6.90 $
Purchases:
August 8
14,000
6.30
88,200
6.30
6.30
6.30
August 18
8,400
5.80
48,720
5.80
5.80
5.80
August 28
4,800
5.80
27,840
5.80
5.80
5.80
Total
30,000
$
184,080
$
$
2$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0d94551-112d-40a3-b72d-4ab09ae67b90%2Fc61ac188-6f63-423d-874a-d59be26f7eb7%2Fdqwvpao_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 merchandise inventory during the month of August
2021:
Aug.1 Inventory on hand-2,800 units; cost $6.90 each.
8 Purchased 14,000 units for $6.30 each.
14 Sold 11, 200 units for $12.80 each.
18 Purchased 8,400 units for $5.80 each.
25 Sold 10, 200 units for $11.80 each.
28 Purchased 4,800 units for $5.80 each.
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, 2021,
balance sheet and the cost of goods sold it would report in its August 2021 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
Cost of
Goods
Available for
Perpetual FIFO:
Cost per
unit
# of
units
sold
Cost per
unit
Cost of
Goods Sold
# of units Cost per
sold
Cost of
Goods Sold
Total Cost of
Goods Sold
# of units
in
inventory
Cost per
unit
Ending
Inventory
# of units
unit
Sale
Beg. Inventory
2,800 $ 6.90 $
19,320
$
6.90
$
6.90
$
6.90 $
Purchases:
August 8
14,000
6.30
88,200
6.30
6.30
6.30
August 18
8,400
5.80
48,720
5.80
5.80
5.80
August 28
4,800
5.80
27,840
5.80
5.80
5.80
Total
30,000
$
184,080
$
$
2$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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