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. 3. 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 Average cost method. (Round "Average 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 Average method. (Round "Cost per Unit" to 2 decimal places.)

16200

6.30

102060

5400

6.30

34020

13500

5.88

79380

9800

5.88

57624

3700

5.88

21756

so inventory balance on balance sheet is $21756

Cost of goods sold on income statement is $125664

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

16200

6.30

102060

Aug 14 10800 6.30 68040

5400

6.30

34020

Aug 18 8100 5.60 45360

13500

5.88

79380

Aug 25

9800

5.88

57624

3700

5.88

21756

Total 125664 21756

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