Altira Corporation provides the following information related to its merchandise inventory during the month of August...
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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,400 units; cost $7.50 each. 8 Purchased 17,000 units for $6.90 each. 14 Sold 13,600 units for $13.40 each. 18 Purchased 10,200 units for $6.40 each. 25 Sold 12,600 units for $12.40 each. 28 Purchased 5,400 units for $5.80 each. 31 Inventory on hand-9,800 units. 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 last-in, first-out (LIFO). Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Perpetual LIFO: Cost # of units per unit Cost of Goods Sold Total Cost of Goods Sold # of units in ending inventory Beg. Inventory $ 7.50 Purchases: August 8 6.90 August 18 6.40 August 28 5.80 Total Cost Cost of Goods # of units per Available for Sale sold unit 25,500 117,300 65,280 31,320 239,400 3,400 $7.50 $ 17,000 6.90 10,200 6.40 5,400 5.8 36,000 $ Cost Cost of # of units per unit Goods Sold sold $7.50 6.90 6.40 5.80 Inventory Balance Cost per unit $ 7.50 6.90 6.40 5.80 Ending Inventory Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,400 units; cost $7.50 each. 8 Purchased 17,000 units for $6.90 each. 14 Sold 13,600 units for $13.40 each. 18 Purchased 10,200 units for $6.40 each. 25 Sold 12,600 units for $12.40 each. 28 Purchased 5,400 units for $5.80 each. 31 Inventory on hand-9,800 units. 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 last-in, first-out (LIFO). Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Perpetual LIFO: Cost # of units per unit Cost of Goods Sold Total Cost of Goods Sold # of units in ending inventory Beg. Inventory $ 7.50 Purchases: August 8 6.90 August 18 6.40 August 28 5.80 Total Cost Cost of Goods # of units per Available for Sale sold unit 25,500 117,300 65,280 31,320 239,400 3,400 $7.50 $ 17,000 6.90 10,200 6.40 5,400 5.8 36,000 $ Cost Cost of # of units per unit Goods Sold sold $7.50 6.90 6.40 5.80 Inventory Balance Cost per unit $ 7.50 6.90 6.40 5.80 Ending Inventory
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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