Question

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
 

Aug.1	Inventory on hand—2,400 units; cost $6.50 each.
8	Purchased 12,000 units for $5.90 each.
14	Sold 9,600 units for $12.40 each.
18	Purchased 7,200 units for $5.40 each.
25	Sold 8,600 units for $11.40 each.
28	Purchased 4,400 units for $5.80 each.
31	Inventory on hand—7,800 units.

 

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 last-in, first-out (LIFO).

Answer 1

cost of goods sold - August 14 Cost of goods sold - August 25 Inventory Balances Cost of goods available for sale Cost of goods # of units in Cost of Cost per goods unit sold Total cost of goods sold Cost of Cost per goods unit sold #of units inventory 2,400 Cost per Ending unit Inventory $ 6.50 15,600 Cost available for # of Perpetual LIFO: # of units per unit sale units Beg. Inventory 2,400 $ 6.50 15,600 Purchases: August 8 12,000 $ 5.90 70,800 9,600 August 18 7,200 $ 5.40 38,880 August 28 4,400 $ 5.80 25,520 Total 26,000 150,800 9,600 $ 5.90 56,640 1,000 $ 5.90 5,900 1,400 7,200 $ $ 5.90 5.40 8,260 38,880 $ 5.80 4,400 7,800 25,520 47,020 56,640 8,600 47,140 103,780 Note: Under LIFO method goods bought last should be sold first.