50.1K

Verified Solution

Link Copied!

Altira Corporation provides the following information related to its inventory during the month of August $2024$ :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 Average cost method.Note: Round "Average Cost per Unit" to $2$ decimal places.

$\backslash$table$[[,$Inventory on hand,Cost of Goods Sold,Inventory Balance,$],[$Perpetual Average,$\backslash$table$[[$Number$],[$of units$]],\backslash$table$[[$Cost per$],[$unit$]],\backslash$table$[[$Inventory$],[$Value$]],\backslash$table$[[$Number$],[$of units$],[$sold$]],\backslash$table$[[$Average$],[$Cost per$],[$unit$]],\backslash$table$[[$Cost of$],[$Goods Sold$]],\backslash$table$[[$Number of$],[$units in$],[$inventory$]],\backslash$table$[[$Cost per$],[$unit$]],\backslash$table$[[$Ending$],[$inventory$]]],[$Beginning Inventory,,,,,,,,,$],[$Purchase $-$ August $8,,,,,,,,,],[$Sale $-$ August $14,,,,,,,,,],[$Purchase $-$ August $18,,,,,,,,,],[$Sale $-$ August $25,,,,,,,,,],[$Purchase $-$ August $28,,,,,,,,,],[$Total$,,,,,,,,,]]$Altira Corporation provides the following information related to its inventory during the month of August $2024$:Altira Corporation provides the following information related to its inventory during the month of August $2024$ :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.

$\backslash$table$[[\backslash$table$[[$Perpetual FIFO:$],[$Beginning Inventory$]],$Cost of Goods Available for Sale,Cost of Goods Sold $-$ August $14,$Cost of Goods Sold $-$ August $25,\backslash$table$[[$Total Cost of$],[$Goods Sold$]],$Inventory Balance$],[\backslash$table$[[\backslash$table$[[$Number of$],[$units$]]],[2,500]],\backslash$table$[[$Cost per$],[$unit$]],\backslash$table$[[$Cost of$],[$Goods$],[$Available for$],[$Sale$]],\backslash$table$[[\backslash$table$[[$Number$],[$of units$],[$sold$]]]],\backslash$table$[[$Cost per$],[$unit$]],\backslash$table$[[$Cost of$],[$Goods Sold$]],\backslash$table$[[$Number$],[$of units$],[$sold$]],\backslash$table$[[$Cost per$],[$unit$]],\backslash$table$[[$Cost of$],[$Goods Sold$]],\backslash$table$[[$Number of$],[$units in$],[$inventory$]],\backslash$table$[[$Cost per$],[$unit$]],\backslash$table$[[$Ending$],[$Inventory$]]],[$$$6\mathrm{.}60,$$$,16,500,,6\mathrm{.}60,$$$,$$$,,$$

August $1$ Inventory on hand$2,500$ units; cost $$6\mathrm{.}60$ each.

August $8$ Purchased $12,500$ units for $$6\mathrm{.}00$ each.

August $14$ Sold $10,000$ units for $$12\mathrm{.}50$ each.

August $18$ Purchased $7,500$ units for $$5\mathrm{.}20$ each.

August $25$ Sold $9,000$ units for $$11\mathrm{.}50$ each.

August $28$ Purchased $4,500$ units for $$5\mathrm{.}80$ each.

August $31$ Inventory on hand$8,000$ units.

Required:

$1.$ 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.

Answer & Explanation Solved by verified expert

See Answer