Required information[The following information applies to the questions displayed below.] Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1Inventory on hand—3,600 units; cost $7.70 each.8Purchased 18,000 units for $7.10 each.14Sold 14,400 units for $13.60 each.18Purchased 10,800 units for $6.60 each.25Sold 13,400 units for $12.60 each.28Purchased 5,600 units for $5.80 each.31Inventory on hand—10,200 units. 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.

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Answered: Altira Corporation provides the…

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 7MC: Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on...

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Required information

[The following information applies to the questions displayed below.]

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:


Aug.1	Inventory on hand—3,600 units; cost $7.70 each.
8	Purchased 18,000 units for $7.10 each.
14	Sold 14,400 units for $13.60 each.
18	Purchased 10,800 units for $6.60 each.
25	Sold 13,400 units for $12.60 each.
28	Purchased 5,600 units for $5.80 each.
31	Inventory on hand—10,200 units.

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.

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