Question

Required information Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018: Aug.1 Inventory on hand-3,700 units cost $7.80 each. 8 Purchased 18,500 units for $7.20 each. 14 Sold 14, 800 units for $13.70 each. 18 Purchased 11, 100 units for $6.40 each. 25 Sold 13, 800 units for $12.70 each. 31 Inventory on hand 1.700 units. 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.) Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual FEO: Cost of Goods Available for Sale Cost of #of Cost per Goods units unit Available for Sale of Cost per unit Cost of Goods Sold of units sold Cost per Cost of # of units unit Goods Sold in ending Inventory $ 0.00 $ of Cost per unit Ending Inventory sold Beg Inventory $ 0.00 $ 0.00 $ 0 Purchases August 8 August 18 0.00 0.001 500 $ 0.00 0.00 0 0.00 0.00 0S 00S 0 Total

Answer 1

Umuu uur Perpetual FIFO: B DF Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Cost of Goods Cost of # of units Cost of # of units Cost per unit Available for Sale # of units sold Cost per unit Cost per unit Goods Goods Sold sold Sold 3,700 $7.80 $ 28,860 3,700 $7.80 $28,860 $7.80 $0 K M Inventory Balance # of units in ending Ending Cost per unit in Inventory inventory 1 $7.80 $0 3 Beg. Inventory 1 Purchases: C280l 11,100 Aug-08 Aug-18 18,500 $ 11,100 $ 33,300 7.20 6.40 $ $ 133,200 71,040 233,100 $ $ 7.20 6.40 $79,920 $0 108,780 7,400 $ 6,400 $ 13,800 7.20 6.40 53,280 40,960 $ 94.240 5. 50 6.40 30,080| $ 30,080 4,700 $ 4,700 7 Total Is 14,800 $ in mm Cost of Goods Available for Sale Perpetual LIFO: # of units Cost per unit Available for Sale Cost of Goods 3,700 $7.80S 28,860 Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Cost of # of units Cost of # of units sold cost per unit Cost per unit Goods Goods Sold sold Sold $7.80 $0 $6.10 Inventory Balance # of units in Ending ending Cost per unit Inventory inventory 3,700 $6.10 $22,570 $0 2 Beg. Inventory 3 Purchases: $7,200 Aug-08 Aug-18 18,500 $ 11,100 $ 33,300 7.20 $ 6.40 $ $ 133,200 71,040 233,100 14,800 $ $ 14,800 7.20 6.40 $ $ $ 106,560 - 106,560 2,700 $ 11,100 $ 13,800 7.20 $ 6.40 $ $ 19,440 71,040 90,480 1,000 $ 0 $ 4,700 7.20 6.40 6 Total $ 29,770

Inventory on hand Cost of Goods Sold Inventory Balance Perpetual Average # of units Cost of Ending |# of units Cost per unit Inventory Value # of units sold Avg.Cost per units "Goods Sold din ending Cost per unit: "inventory Jinventory 0 Beginning Inventory 3,700 $7.80 $28,860 3,700 $ 7.80 $28,860 1 Purchase - August 8 18,500 $ 7.20 133,200 18,500 $ 7.20 $133,200 2 Subtotal Average Cost 22,200 $ 7.30 162,060 3 Sale - August 14 14,800 $ 7.30 $108,040 4 Subtotal Average Cost 7,400 $ 7.30 $54,020 5 Purchase - August 18 11,100 $6.40 71,040 11,100 $ $71.040 6 Subtotal Average Cost 18,500 $ 6.76 $ 125,060 7 Sale - August 25 13,800 $ 6.76 9 3,288 8 Total 33,300 $233, 100 28,600 $201,328 4 ,700 $ 6.76 $31,772 6401