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-3,400 units; cost $7.50 each 8 Purchased 17,000 units for $6.90 each 14 Sold 13,600 units for $13.40 each 18 Purchased 10,200 units for $6.40 each 25 Sold 12,600 units for $12.40 each 28 Purchased 5,400 units for $5.80 each 31 Inventory on hand--9,800 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. Cost of Goods Sold -August 25 Cost of Goods Available for Sale Cost of Goods Sold-August 14 Inventory Balance Cost of Perpetual FIFO: #of of units in ending inventory Cost per #of units sold Cost of Goods Sold Total Cost of Cost per unit Cost per unit Goods Available for Cost of Goods Sold Cost per unit Ending Inventory #of units units sold unit Goods Sold Sale 7.50 $ 7.50 $ 2,700 $ 7.50 $ 3,400 7.50 25,500 $ $ Beg. Inventory 20,250 0 0 Purchases: 7,500 wwwr m August 8 117,300 10,200 17,000 6.90 6.90 70,380 6.90 51,750 6.90 0 August 18 6.40 65,280 10,200 6.40 0 6.40 6.40 www..w August 28 0.00 0 0.00 0.00 51,750 $ Total S 208,080 12,900| $ $ 142,380 $ 90,630 7,500 0 30,600

Answer 1

1.

	cost of goods available for sale			cost of goods sold-August 14			cost of goods sold Aug 25			total cost of goods sold	inventory balance
	#of units	cost per unit	inventory value	# of units	cost per unit	inventory value	# of units	cost per unit	inventory value		# of units in ending inventory	cost per unit	ending inventory
Beg. inventory	3400	7.5	25500	3400	7.5	25500				25500	-	-	-
Purchase
August - 8	17000	6.9	117300	10200[13600-3400]	6.9	70380	6800[17000-10200]	6.9	46920	117300[70380+46920]
August 18	10200	6.40	65280				5800[12600-6800]	6.4	37120	37120	4400[10200-5800]	6.4	28160
August 28	5400	5.80	31320								5400	5.8	31320
Total	36000		239400	13600		95880	12600		84040	179920	9800		59480

2.

perpetual average	inventory on hand			cost of goods sold			inventory balance
	# of units	cost per unit	inventory value	# of units sold	average cost per unit	cost of goods sold	# units in ending inventory	cost per unit	ending inventory
beginning inventory	3400	7.5	25500				3400	7.5	25500
purchase august 8	17000	6.9	117300				17000	6.9	117300
	20400[3400+17000]	7	142800[25500+117300]
sale august 14				13600	7	95200	6800	7	47600
purchase august 18	10200	6.4	65280				6800	7	47600
							10200	6.4	65280
							17000	6.64	112880
sale august 25				12600	6.64	83664	4400[17000-12600]	6.64	29216
purchase august 28	5400	5.8	31320				5400	5.8	31320
Total	36000		239400	26200		178864	9800		60536