Question

Required information Part 1 of 3 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. 8 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 1 Required: 1. 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 FIFO 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 Inventory Balance Perpetual FIFO: Cost of Goods Available for Sale Cost of # of Cost Goods units per Available unit for Sale 3,000 $7.10 $ 21,300 # of units sold Cost Cost per unit Cost of Goods Sold # of units Cost of Goods Sold Cost per unit # of units in ending inventory 3,000 Ending Inventory per unit sold | 3,000 $ 7.10 $ 21,300 $ 7.10 $ 0 $ 7.10 $ 21,300 Beg. Inventory Purchases: August 8 August 18 Total 15,000 9,000 27,000 6.50 6.00 97,500 54,000 172,800 9,000 9,000 X 21,000 6.50 6.00 5 8,500 54,000 $ 133,800 6.50 6.00 6,000 4,000 13,000 6.50 6.00 39,000 24,000 84,300 $ $ 0 $

Answer 1

Answer:

	Cost of goods available for sale			Cost of goods sold-August 14			Cost of goods sold-August 14			Inventory Balance
Perpetual FIFO:	# of Units	Cost per unit	Cost of Goods Available for sale	# of Units	Cost per unit	Cost of Goods Sold	# of Units	Cost per unit	Cost of Goods Sold	# of Units	Cost per unit	Ending Inventory
Beg. Inventory	3,000	$7.10	$21,300	3,000	$7.10	$21,300
Purchases:
August 8	15,000	$6.50	$97,500	9,000	$6.50	$58,500	6,000	$6.50	$39,000
August 18	9,000	$6.00	$54,000				5,000	$6.00	$30,000	4,000	$6.00	$24,000
Total	27,000		$172,800	12,000			11,000		$69,000	4,000		$24,000