Question

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Part 2 of 3 Required information Exercise 8-14 Inventory cost flow methods; perpetual system [LO8-1, 8-4] Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018: 1.53 points Aug.1 Inventory on hand–3,000 units; cost $7.10 each. Purchased 15,000 units for $6.50 each. 14 Sold 12,000 units for $13.00 each. 18 Purchased 9,000 units for $6.00 each. 25 Sold 11,000 units for $12.00 each. 31 Inventory on hand-4,000 units. Exercise 8-14 Part 2 2. Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using the LIFO method. (Round "Cost per Unit" to 2 decimal places.) Answer is not complete. Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Perpetual LIFO: # of # of Cost of Goods Available for Sale Cost Cost of # of Goods units per Available unit for Sale 3,000 $7.10 $ 21,300 Cost of Goods Cost per unit units Cost per unit units sold sold Inventory Balance # of units in Cost Ending ending per unit Inventory inventory 3,000 $ 7.10 $ 21,300 Cost of Goods Sold $ 0 $ 7.10 $ 0 $ 7.10 Beg. Inventory Purchases: August 8 August 18 Total 15,000 ,000 27,000 6.50 6.00 97,500 54.000 172,800 12,000 9.000 21,000 6.50 6.00 9 78,000 54.000 $ 132,000 6.50 6.00 3,000 3,000 9,000 6.50 6.00 19,500 18,000 58,800 $ $ 0 $

Answer 1

Perpetual LIFO	Cost of goods available for sale			Cost of goods sold - August 14			Cost of goods sold - August 25			Ending Inventory
Beginning Inventory	3,000	$         7.10	$          21,300	0	$          7.10	0	0	$       7.10	0	3,000	$       7.10	$ 21,300
Purchases:
Aug-08	15,000	$         6.50	$          97,500	12000	$          6.50	$       78,000	2000	$       6.50	$        13,000	1,000	$       6.50	$    6,500
Aug-18	9,000	$         6.00	$          54,000	0	$          6.00	0	9,000	$       6.00	$        54,000	0	$       6.00	0
	27,000		$      1,72,800	12,000		$       78,000	11,000		$        67,000	4,000		$ 27,800

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