Required information Exercise 8-14 Inventory cost flow methods; perpetual system

Question

Required information Exercise 8-14 Inventory cost flow methods; perpetual system [LO8-1, 8-4] Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018 Inventory on hand-2,700 units; cost $6.80 Aug.1 each 8 Purchased 13,500 units for $6.20 each. 14 Sold 10,800 units for $12.70 each 18 Purchased 8,100 units for $5.60 each. 25 Sold 9,800 units for $11.70 each 31 Inventory on hand-3,700 units Exercise 8-14 Part 1 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.) Cost of Goods Available for Sale Goods Sold- August 25 ost oS Inventory Balan August 14 Perpetual FIF oods | # of unit Available units Cost Cost of # of # of | Cost | Cost of units in Cost En Goods units per Go Sold ending per unit Inve for Sale sold per unit Goods units Cost Cost of Sold sold per unit invento Beg Invento Purchases 6.80 $ 18,360 2,700 6.80 $18,360 $ 6.80 $ 0 $ 6.80 $ 6.20 5.60 6.20 5.60 6.20 5.60 83,700 August 188,100t 5.60 45,360 Total 24,300 18,360 147,420 2,700

Explanation / Answer

cost of goods avalilable for sale cost of goods sold - august 14 cost of goods sold - august 25 endingin inventory -fifo FIFO units cost COG avail for sale units cost COGS units cost COGS unts cost ending inventory beginning inventory 2700 6.80 18360 2700 6.80 18360 6.80 6.80 purchases: Aug-08 13500 6.20 83700 6.20 0 6.20 0 6.20 Aug-18 8100 5.60 45360 5.60 20600 5.60 115360 3700 5.60 20720 total 24300 147420 2700 18360 20600 115360 3700 20720 cost of goods avalilable for sale cost of goods sold - august 14 cost of goods sold - august 25 endingin inventory -LIFO LIFO units cost COG avail for sale units cost COGS units cost COGS unts cost ending inventory beginning inventory 2700 6.80 18360 6.80 0 6.80 0 2700 6.80 18360 purchases: Aug-08 13500 6.20 83700 1700 6.20 10540 10800 6.20 66960 1000 6.20 6200 Aug-18 8100 5.60 45360 8100 5.60 45360 5.60 0 5.60 0 total 24300 147420 9800 55900 10800 66960 3700 24560

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.