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 August2021: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.Required:1. Using calculations based on a perpetual inventory system, determine the inventory Balance Altira would report in its August 31, 2021,palance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method.Cost of Goods Sold - August 25Inventory BalanceCost of Goods Available for SaleCost of Goods Sold - August 14Cost ofGoods# of unitsinCost perEnd# ofunitssoldTotal Cost ofGoods SoldPerpetual FIFO:Cost perunitCost of# of unitsCost perCost ofCost perunitGoods SoldunitInven# of unitsGoods SoldsoldinventoryAvailable forSaleunit247.70$7.702$7.70Beg. Inventory3,600$ 7.7027,7207.10Purchases:7.107.1018,0007.10127,8006.60August 86.606.6010,8006.6071,2805.80August 185.805.805,6005.8032,480August 2838,000$259,280TotalNext >< Prev6 7of 8

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Description: 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 August2021:Aug. 1 Inventory on hand-3,600 units;

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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.

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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6EB: Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a...

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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