Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,000 units; cost $5.30 each. 8 Purchased 8,000 units for $5.50 each 14 Sold 6,000 units for $12.00 each. 18 Purchased 6,000 units for $5.60 each 25 Sold 7,000 units for $11.00 each 28 Purchased 4,000 units for $5.80 each 31 Inventory on hand-7,000 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 Cost of Goods Available for Sale Perpetual LIFO: #of units sold #of units in ending inventory Cost per Cost per unit #of Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold Ending Inventory units unit Beg. Inventory 5.30 $ 5.30 $ 2,000 $ 2,000 5.30$ 10,600 0 0 $ 5.30 $ 10,600 Purchases: August 8 5.50 44,000 5.50 5.50 5.50 8,000 6,000 August 18 5.60 0 5.60 5.60 33,600 5.60 0 33,600 6,000 4,000 4,000 August 28 0 0 23,200 5.80 23,200 5.80 5.80 5.80 Total 0 0 $ 33,600 33,600 $ 20,000 $ 111,400 6,000 6,000 33,800
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,000 units; cost $5.30 each. 8 Purchased 8,000 units for $5.50 each 14 Sold 6,000 units for $12.00 each. 18 Purchased 6,000 units for $5.60 each 25 Sold 7,000 units for $11.00 each 28 Purchased 4,000 units for $5.80 each 31 Inventory on hand-7,000 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 Cost of Goods Available for Sale Perpetual LIFO: #of units sold #of units in ending inventory Cost per Cost per unit #of Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold Ending Inventory units unit Beg. Inventory 5.30 $ 5.30 $ 2,000 $ 2,000 5.30$ 10,600 0 0 $ 5.30 $ 10,600 Purchases: August 8 5.50 44,000 5.50 5.50 5.50 8,000 6,000 August 18 5.60 0 5.60 5.60 33,600 5.60 0 33,600 6,000 4,000 4,000 August 28 0 0 23,200 5.80 23,200 5.80 5.80 5.80 Total 0 0 $ 33,600 33,600 $ 20,000 $ 111,400 6,000 6,000 33,800
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-2,000 units; cost $5.30 each.
8 Purchased 8,000 units for $5.50 each
14 Sold 6,000 units for $12.00 each.
18 Purchased 6,000 units for $5.60 each
25 Sold 7,000 units for $11.00 each
28 Purchased 4,000 units for $5.80 each
31 Inventory on hand-7,000 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
Cost of
Goods
Available for
Sale
Perpetual LIFO:
#of
units
sold
#of units
in ending
inventory
Cost per
Cost per
unit
#of
Cost per
unit
Cost of
Goods Sold
# of units
sold
Cost per
unit
Cost of
Goods Sold
Total Cost of
Goods Sold
Ending
Inventory
units
unit
Beg. Inventory
5.30 $
5.30 $
2,000 $
2,000 5.30$
10,600
0
0
$
5.30
$
10,600
Purchases:
August 8
5.50
44,000
5.50
5.50
5.50
8,000
6,000
August 18
5.60
0
5.60
5.60
33,600
5.60
0
33,600
6,000
4,000
4,000
August 28
0
0
23,200
5.80
23,200
5.80
5.80
5.80
Total
0
0
$
33,600
33,600
$
20,000
$
111,400
6,000
6,000
33,800
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