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-3, 900 units; cost $8.00 each. 8 Purchased 19,500 units for $7.40 each. 14 Sold 15,600 units for $13.90 each. 18 Purchased 11,700 units for $6.60 each. 25 Sold 14.600 units for $12.90 each. 28 Purchased 5,900 units for $5.80 each. 31 Inventory on hand-10,800 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. Inventory Balance Total Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 0 $ 8.00 $ 0 Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Perpetual FIFO: Cost of Cost # of Cost of Cost of # of # of Goods per Cost units Goods Cost units Available units Goods unit sold per unit Sold sold per unit for Sale Sold Beg. Inventory 3,900 $8.00 $ 31,200 3,900 $ 8.00 $ 31,200 0 $ 8.00 $ 0 Purchases: August 8 19,500 7.40 144,300 19,500 X 7.40 144,300 0 X 7.40 August 18 11,700 6.60 77,220 6,800 6.60 44,880 4.900 X 6.60 32,340 August 28 5,900 5.80 34,220 5.80 0 5,900 5.80 34,220 Total 41,000 $ 286,940 30,200 $ 220,380 10,800 $ 66,560 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 0 4,900 5,900 10,800 7.40 6.60 5.80 0 32,340 34,220 $ 66,560 S 286,940

Answer 1

Perpetual : FIFO Goods Purchasd Cost of Goods Sold Cost of Goods Sold Inventory Balance cost of Goods Cost Per Available for # of Units Cost Per Cost of # of Units Cost Per Cost of Total cost of Cost Per Ending # of Units Unit sales sold Unit Goods Sold sold Unit Goods Sold Good s Sold # of Units Unit Inventory Beginning inventoryl 3900 8.00 31200 3900 8.00 31200 8.00 8.00 Purchases Aug-08 19500 7.40 144300 11700 7.40 86580 7800 7.40 57720 7.40 Aug-18 11700 6.60 77220 6.60 06800 6.60 44880 4900 6.60 32340 Aug-28 5900 5.80 34220 5.80 5.80 5900 5.80 34220 Totals 41000 286940 15600 117780 14600 102600 220380 25400 66560