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 ,000 units cost $8.10 each. Turchased 20,000 units for $7.50 each. 14 Sold 16,000 units for $14.00 each. 19 Purchased 12,000 units for $7.00 each. 25 Sold 15.000 units for $13.00 each. 28 Purchased 6,000 units for $5.80 each. 31 Inventory band-11.000 units Required: 1. 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 FIFO method Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual FIFO: Cost of Cost Goods per unit Available for Total Cost of of units of #of units sold Cost per unit Cost of Goods Sold of units sold Cost per unit Cost of Goods Sold in ending Cost per nie Goods Sold Ending Inventory Inventory Beg Inventory $ 0.00 $ 0.00 $ 000 $ Purchases 0.00 0.00 August 18 August 28 Total 0.00 < Prev 3 of 4 Next >

Answer 1

1.

	Cost of goods available for sale			Cost of goods sold - Aug 14			Cost of goods sold - Aug 25				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	Total of Cost of goods sold	# units in ending inventory	Cost per unit	Ending inventory
Beg. Inventory	4000	8.1	32400	4000	8.1	32400
Purchases
August 8	20000	7.5	150000	12000	7.5	90000	8000	7.5	60000
August 18	12000	7	84000				7000	7	49000		5000	7	35000
August 28	6000	5	30000								6000	5	30000
Total	42000		296400	16000		122400	15000		109000		11000		65000

2. (I) to be included

(ii) to be included.