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-3,600 units; cost $7.70 each. 8 Purchased 18,000 units for $7.10 each. 14 Sold 14,400 units for $13.60 each. 18 Purchased 10,800 units for $6.60 each. 25 Sold 13, 400 units for $12.60 each. 28 Purchased 5,600 units for $5.80 each. 31 Inventory on hand-10, 200 units. 2. 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 Average cost method. Round "Average Cost per Unit" to 2 decimal places.) Inventory on hand Cost of Goods Sold Inventory Balance Perpetual Average Cost of # of units in Cost per unit # of units Inventory Value # of units Avg.Cost sold per unit Cost per 1 unit ending inventory Ending inventory Goods Sold Beginning Inventory Purchase - August 8 Sale - August 14 Purchase - August 18 Sale - August 25 Purchase - August 28 Total Pos 0 $ 0

Answer 1

Schedule

	Purchase			Cost of goods sold			Inventory balance
perpetual average	# of units	cost per unit	Inventory value	# of units sold	Avg cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending inventory
Beginning inventory							3600	7.7	27720
Purchase Aug 8	18000	7.10	127800				21600	7.20	155520
Sale Aug 14				14400	7.20	103680	7200	7.20	51840
Purchase Aug 18	10800	6.60	71280				18000	6.84	123120
Sale Aug 25				13400	6.84	91656	4600	6.84	31464
Purchase Aug 28	5600	5.8	32480				10200	6.27	63944
Aug 30 Balance						195336			63944