Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,200 units; cost $6.30 each. 8 Purchased 11,000 units for $5.70 each. 14 Sold 8,800 units for $12.20 each. 18 Purchased 6,600 units for $5.20 each. 25 Sold 7,800 units for $11.20 each. 28 Purchased 4,200 units for $5.80 each. 31 Inventory on hand-7,400 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 Inventory Balance Perpetual LIFO: Cost Cost # of units sold Cost рer unit Total Cost of Goods Sold Cost # of units Cost of per unit Cost of Goods Available for Sale Cost of Goods Sold # of units sold per unit # of units in ending inventory per unit Ending Inventory Goods Sold Beg. Inventory Purchases: 2,200 $6.30 13,860 2,200 $6.30 13,860 $6.30 O $ 6.30 August 8 11,000 5.70 62,700 6,600 0 5.70 37,620 4,400 5.70 25,080 5.70 August 18 August 28 6,600 5.20 34,320 5.20 3,400 x 5.20 17,680 3,200 5.20 16,640 4,200 5.8 24,360 5.80 5.80 4,200 O 5.80 24,360 Total 24,000 135,240 8,800 51,480 7,800 42,760 94,240 7,400 $ 41,000
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,200 units; cost $6.30 each. 8 Purchased 11,000 units for $5.70 each. 14 Sold 8,800 units for $12.20 each. 18 Purchased 6,600 units for $5.20 each. 25 Sold 7,800 units for $11.20 each. 28 Purchased 4,200 units for $5.80 each. 31 Inventory on hand-7,400 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 Inventory Balance Perpetual LIFO: Cost Cost # of units sold Cost рer unit Total Cost of Goods Sold Cost # of units Cost of per unit Cost of Goods Available for Sale Cost of Goods Sold # of units sold per unit # of units in ending inventory per unit Ending Inventory Goods Sold Beg. Inventory Purchases: 2,200 $6.30 13,860 2,200 $6.30 13,860 $6.30 O $ 6.30 August 8 11,000 5.70 62,700 6,600 0 5.70 37,620 4,400 5.70 25,080 5.70 August 18 August 28 6,600 5.20 34,320 5.20 3,400 x 5.20 17,680 3,200 5.20 16,640 4,200 5.8 24,360 5.80 5.80 4,200 O 5.80 24,360 Total 24,000 135,240 8,800 51,480 7,800 42,760 94,240 7,400 $ 41,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...
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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-2,200 units; cost $6.30 each.
8 Purchased 11,000 units for $5.70 each.
14 Sold 8,800 units for $12.20 each.
18 Purchased 6,600 units for $5.20 each.
25 Sold 7,800 units for $11.20 each.
28 Purchased 4,200 units for $5.80 each.
31 Inventory on hand-7,400 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
Inventory Balance
Perpetual
LIFO:
Cost
# of
units
sold
Cost
Cost
Total Cost
of Goods
Sold
Cost
Cost of Goods
Sold
# of units
sold
Cost of
Goods Sold
# of units in ending
inventory
# of
per
unit
Cost of Goods
Available for Sale
per
unit
per
unit
per
unit
Ending
Inventory
units
Beg.
Inventory
2,200
$6.30
13,860
2,200
$ 6.30
13,860
$ 6.30
X $ 6.30
Purchases:
August 8
11,000
5.70
62,700
6.600 X
5.70
37,620
4.400 X
5.70
25,080
5.70
August 18
6,600
5.20
34,320
5.20
3,400 X
5.20
17,680
3,200
5.20
16,640
August 28
4,200
5.8
24,360
5.80
5.80
4,200
5.80
24.360
Total
24,000
135.240
8,800
2$
51,480
7,800
42,760
94,240
7,400
41,000
5555
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