Altira Corporation uses a perpetual inventory system. The following transactions

Question

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—2,700 units; cost $6.80 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. 2. 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 LIFO method. (Round "Cost per Unit" to 2 decimal places.)

Explanation / Answer

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 LIFO method. (Round "Cost per Unit" to 2 decimal places.)

2700

13500

6.80

6.20

18360

83700

2700

2700

6.80

6.20

18360

16740

2700

2700

8100

6.80

6.20

5.60

18360

16740

45360

8100

1700

5.60

6.20

45360

10540

2700

1000

6.80

6.20

18360

6200

so inventory balance on balance sheet is $24560

Cost of goods sold on income statement is $122860

date quantity purchase unit cost purchase cost quantity sold unit cost cost of goods sold inventory on hand unit cost inventory cost aug 1 2700 6.80 18360 Aug 8 13500 6.20 83700

2700

13500

6.80

6.20

18360

83700

Aug 14 10800 6.20 66960

2700

2700

6.80

6.20

18360

16740

Aug 18 8100 5.60 45360

2700

2700

8100

6.80

6.20

5.60

18360

16740

45360

Aug 25

8100

1700

5.60

6.20

45360

10540

2700

1000

6.80

6.20

18360

6200

Total 122860 24560

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