Required information Altira Corporation uses a perpetual inventory system. The f

Question

Required information Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018: 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 31 Inventory on hand-4,600 units. Required 1. Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using the FIFO method. (Round "Cost per Unit" to 2 decimal places.)

Explanation / Answer

1)

Cost of goods sold reported on income statement = 104400+92040 = $196440

Inventory balance = $30360

Cost of goods available for sale Cost of goods sold-Aug 14 Cost of good sols-Aug 25 Inventory balance Perpetual FIFO # of units Cost per unit Cost of goods available for sale #of units sold Cost per unit Cost of good sold # of units sold Cost per unit Cost of goods sold # of units in ending inventory Cost per unit Ending inventory Aug 7 3600 7.70 27720 3600 7.7 27720 Aug 8 18000 7.10 127800 10800 7.1 76680 7200 7.10 51120 Aug 18 10800 6.60 71280 6200 6.6 40920 4600 6.60 30360 Total 32400 226800 14400 104400 13400 92040 4600 30360

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