Question

Part 3 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. 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 3 3. 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 Average cost method. (Round "Average Cost per Unit" to 2 decimal places.) Answer is not complete. Inventory on hand Cost of Goods Sold Perpetual Average Cost of # of units Cost per Inventory # of units sold Avg.Cost per unit Goods Sold Inventory Balance # of units Cost in Ending per ending inventory inventory 18,000 $ 7.10 $ 127,800 Value unit unit $ Beginning Inventory Purchase - August 3,000 15,000 $ 7.10 $ 6.50 21,300 97,500 12,000 $ 6.60 $ 79,200 6,000 $ 6.60 $ 39,600 Sale - August 14 Purchase - August 9.000 $ 6.00 54.000 18 Sale - August 25 $ 6.24 11,000 23,000 68,640 $ 147,840 4,000 4,000 $ 6.24 $ 6.24 $ $ 24,960 24,960 Total 27,000 $ 172,800

Answer 1

Answer:

Weighted average
Date	Goods In hand			Cost of goods sold			Ending Inventory
	Units	Cost per unit	Cost of purchase	Units sold	Cost per unit	Cost of goods sold	Units	Cost per unit	Ending balance
Aug-01	3,000	7.10	21,300				3,000	7.10	21,300
Aug-08							3,000	7.10	21,300
	15,000	6.50	97,500				15,000	6.50	97,500
Balance							18,000	6.60	1,18,800
Aug-14				12,000	6.6	79,200	6,000	6.60	39,600
Balance							6,000	6.60	39,600
Aug-18							6,000	6.60	39,600
	9,000	6.00	54,000				9,000	6.00	54,000
Balance							15,000	6.24	93,600
Aug-25				11,000	6.24	68,640	4,000	6.24	24,960
Balance							4,000	6.24	24,960
Cost of goods sold	27,000		1,72,800	23,000		1,47,840	4,000		24,960