Altira Corporation provides the following information related to its merchandise inventory during the month of August...

Transcribed Image Text:

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,600 units; cost $6.70 each. 8 Purchased 13,000 units for $6.10 each. 14 Sold 10,400 units for $12.60 each. 18 Purchased 7,800 units for $5.60 each. 25 Sold 9,400 units for $11.60 each.. 28 Purchased 4,600 units for $5.80 each. 31 Inventory on hand-8,200 units. Exercise 8-14 (Algo) 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 Cost per unit Cost of Goods Sold # of units # of units Cost per sold unit Cost of Goods Sold Total Cost of Goods Sold in Cost per unit Ending Inventory sold inventory 2,600 $ 6.70 $ 17,420 $ 6.70 $ 6.70 $ 0 $ 6.70 $ 0 Beg. Inventory Purchases: August 8 13,000 6.10 79,300 6.10 6.10 6.10 0 August 18 7,800 5.60 43,680 5.60 0 5.60 5.60 August 28 4,600 5.80 26,680 5.80 0 5.80 5.80 Total 28,000 $ 167,080 0 $ 0 0 $ 0 $ 0 $ 0 Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,600 units; cost $6.70 each. 8 Purchased 13,000 units for $6.10 each. 14 Sold 10,400 units for $12.60 each. 18 Purchased 7,800 units for $5.60 each. 25 Sold 9,400 units for $11.60 each.. 28 Purchased 4,600 units for $5.80 each. 31 Inventory on hand-8,200 units. Exercise 8-14 (Algo) 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 Cost per unit Cost of Goods Sold # of units # of units Cost per sold unit Cost of Goods Sold Total Cost of Goods Sold in Cost per unit Ending Inventory sold inventory 2,600 $ 6.70 $ 17,420 $ 6.70 $ 6.70 $ 0 $ 6.70 $ 0 Beg. Inventory Purchases: August 8 13,000 6.10 79,300 6.10 6.10 6.10 0 August 18 7,800 5.60 43,680 5.60 0 5.60 5.60 August 28 4,600 5.80 26,680 5.80 0 5.80 5.80 Total 28,000 $ 167,080 0 $ 0 0 $ 0 $ 0 $ 0