Question

Required Information Exercise 8-14 (Static) Inventory cost flow methods; perpetual system (LO8-1, 8-4] 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-2,000 units; cost $5.30 each. 8 Purchased 8,000 units for $5.50 each. 14 Sold 6,080 units for $12.80 each. 18 Purchased 6,000 units for $5.60 each. 25 Sold 7,080 units for $11.80 each. 28 Purchased 4,000 units for $5.80 each. 31 Inventory on hand-7, eee units. Exercise 8-14 (Static) Part 1 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: # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units Cost per sold unit Cost of Goods Sold Total Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ 0.00 $ 0.00 $ $ 0.00 $ | Beg. Inventory Purchases: August 8 August 18 August 28 Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.00 1 0 .00 S 01

Answer 1

Perpetual FIFO Cost of Goods sold - August 14 Cost of Goods sold - August 14 Inventory Balance Cost of Goods available for sale Cost of Goods No of Cost per available for Units unit sale 2000 $ 5.30 $ 10,600.00 No of Units Requirement 1 cost per cost of Goods unit sold Cost of Goods per Units sold Total Cost of No of Cost Ending goods sold units per unit Inventory O $ 5.30 unit 2000 $ 5.30 $ 10,600.00 0 $ 5.30 0 22,000.00 Beg.Inventory Purchasess : Aug-08 Aug-18 Aug-28 Total 22,000.00 16,800.00 8000 $ 5.50 $ 44,000.00 6000 $ 5.60 $ 33,600.00 4000 $ 5.80 $ 23,200.00 20000 $ 111,400.00 4000 $ 0 $ 0 $ 6000 5.50 $ 5.60 $ 5.80 $ $ 4000 $ 5.50 $ 3000 $ 5.60 $ 0 $ 5.80 $ 7000 $ 0 $ 5.50 $ 3000 $ 5.60 $ 16,800.00 4000 $ 5.80 $ 23,200.00 7000 $40,000.00 32,600.00 38,800.00 $71,400.00 Perpetual Average Inventory on Hand Cost of Goods sold Inventory Balance Requirement 2 No of Units Cost per. Inventory Value No of Units Cost per cost of goods unit sold unit Beg.Inventory Purchases - Aug 8 2000 $ 8000 $ 5.30 $ 5.50 $ 10,600.00 44,000.00 Cost No of per Ending Inventory Units unit 2000 $ 5.30 $ 10,600.00 8000 $ 5.50 $ 44,000.00 10000 $ 5.46 $ 54,600.00 4000 $ 5.46 $ 21,840.00 6000 $ 5.60 $ 33,600.00 10000 $ 5.54 $ 55,440.00 3000 $ 5.54 $ 16,632.00 4000 $ 5.80 $ 23,200.00 7000 $ 39,832.00 6000 $ 5.46 $ 32,760.00 Sale - Aug 14 Purchases - Aug 18 6000 $ 5.60 $ 33,600.00 7000 $ 5.54 $ 38,808.00 Sale - Aug 25 Purchases - Aug 28 Total 4000 $ 5.80 $ 23,200.00 20000 $ 111,400.00 13000 $ 71,568.00