70.2K

Verified Solution

Link Copied!

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

Aug.1 Inventory on hand2,000 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 hand7,000 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).

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 hand7,000 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 Perpetual LIFO: # of units Cost per unit # of units sold Cost per unit | Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold Cost of Goods Available for Sale $ 10,600 Total Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 2,000 $ 5.30 0 $ 5.30 $ 0 0 $ 5.30 $ 0 $ 5.30 Purchases: August 8 5.50 6,000 5.50 8,000 5.50 44,000 5.50 5.60 5.60 5.60 August 18 August 28 8,000 6,000 4,000 20,000 44,000 33,600 23,200 111,400 33,000 0 0 33,000 5.60 5.80 5.80 5.80 5.80 Total $ 6,000 $ 8,000 $ 44,000 $ 77,000

Answer & Explanation Solved by verified expert

See Answer