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 4,000 units cost $0.10 cach. 8 Parehased 20,000 units for $7.50 each. 14 Sold 16,000 units for $14.00 each. 18 Parehased 12,000 units for $7.00 each. 25 Bold 15,000 units for $13.00 each. 28 Prohased 6,000 units for $5.80 each. 31 Inventory on hand-11,000 units.

Answer 1

Answer

• Requirement 1

Perpetual FIFO:	Cost of Goods Available for Sale			Cost of Goods Sold - August 14			Cost of Goods Sold - August 25				Inventory Balance
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units sold	Cost per unit	Cost of Goods Sold	Total Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beg. Inventory	4,000	$                            8.10	$32,400	4000	$            8.10	$32,400	0	$                    8.10	$0		0	$8	$0
Purchases:
Aug-08	20,000	$                            7.50	$150,000	12000	$            7.50	$90,000	8000	$                    7.50	$60,000		0	$                   7.50	$0
Aug-18	12,000	$                            7.00	$84,000	0	$            7.00	$0	7000	$                    7.00	$49,000		5,000	$                   7.00	$35,000
Aug-28	6,000	$                            5.80	$34,800	0	$            5.80	$0	0	$                    5.80	$0		6,000	$                   5.80	$34,800
Total	42000		$301,200	16000		$122,400	15000		$109,000	$109,000	11000		$69,800