Inventory cost flow methods; perpetual system $[$LO$8-1,8-4]$$[$The following information applies to the questions displayed below.$]$Altira Corporation provides the following information related to its inventory during the month of August $2024$:August $1$ Inventory on hand$-2,400$ units; cost $$6\mathrm{.}50$ each.August $8$ Purchased $12,000$ units for $$5\mathrm{.}90$ each.August $14$ sold $9,600$ units for $$12\mathrm{.}40$ each.August $18$ Purchased $7,200$ units for $$5\mathrm{.}40$ each.August $25$ Sold $8,600$ units for $$11\mathrm{.}40$ each.August $28$ Purchased $4,400$ units for $$5\mathrm{.}80$ each.August $31$ Inventory on hand$-7,800$ units.Exercise $8-14($Algo$)$ Part $1$Required:Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August $31,2024$ balance sheet and the cost of goods sold it would report in its August $2024$ income statement using the FIFO method.

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Perpetual FIFO: Beginning Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Number of units 2,400 12,000 7,200 4,400 26,000 Cost per unit $6.50 5.90 5.40 5.80 Cost of Goods Available for Sale $ 15,600 70,800 38,880 25,520 $ 150,800 Cost of Goods Sold - August 14 Number of units sold 2,400 S Cost of Goods Sold $ 15,600 6,000 X 8,400 Cost per unit 6.50 5.90 5.40 5.80 35,400 0 0 $ 51,000 Cost of Goods Sold - August 25 Number of units sold Cost of Goods Sold 6,000 x 3,600 x 9,600 Cost per unit S 6.50 5.90 5.40 5.80 $ 0 35,400 19,440 $ 54,840 Total Cost of Goods Sold $ 105,840 Number of units in inventory Inventory Balance 3,600 x 4.400✔ 8,000 Cost per unit $ 6.50 5.90 5.40 5.80 Ending Inventory $ 0 0 19,440 25,520 $ 44,960 Perpetual FIFO: Beginning Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Number of units 2,400 12,000 7,200 4,400 26,000 Cost per unit $6.50 5.90 5.40 5.80 Cost of Goods Available for Sale $ 15,600 70,800 38,880 25,520 $ 150,800 Cost of Goods Sold - August 14 Number of units sold 2,400 S Cost of Goods Sold $ 15,600 6,000 X 8,400 Cost per unit 6.50 5.90 5.40 5.80 35,400 0 0 $ 51,000 Cost of Goods Sold - August 25 Number of units sold Cost of Goods Sold 6,000 x 3,600 x 9,600 Cost per unit S 6.50 5.90 5.40 5.80 $ 0 35,400 19,440 $ 54,840 Total Cost of Goods Sold $ 105,840 Number of units in inventory Inventory Balance 3,600 x 4.400✔ 8,000 Cost per unit $ 6.50 5.90 5.40 5.80 Ending Inventory $ 0 0 19,440 25,520 $ 44,960

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To determine the inventory balance Altira would report in its August 31 2024 balance sheet and the c... View the full answer