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-2,000 units; cost $6.10 each 8 Purchased 10,000 units for $5.50 each 14 Sold 8,000 units for $12.00 each 18 Purchased 6,000 units for $5.00 each . 25 Sold 7,000 units for $11.00 each. 31 Inventory on hand-3,000 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.) Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold August 25 Inventory Balance Perpetual LIFO: Cost of Goods #of units # of units Cost per # of units En Inve Cost of Cost per unit Cost of | # of units Goods Sold sold cost per unit Cost per Goods Sold in ending inventory unit Available for unit Sale Beg. Inventory $0.00 $0.00 S $ 0.00 Purchases August 8 August 18 0.00 0.00 0.00 0.00 0.00 0.00 Total 0 0 0

Explanation / Answer

LIFO:

2000 units * $6.10 = $12200

10000 units * $5.50 = $55000

2000 units * $6.10 = $12200

2000 units * $5.50 = $11000

2000 units * $6.10 = $12200

2000 units * $5.50 = $11000

6000 units * $5 = $30000

6000 units * $5 = $30000

1000 units * $5.50 = $5500

2000 units * $6.10 = $12200

1000 * $5.50 = $5500

2000 units * $6.10 = $12200

1000 units * $5.50 = $5500

Date Cost of goods available for sale Cost of goods sold Ending inventory Aug 1 2000 units * $6.10 = $12200 2000 units * $6.10 = $12200 8 10000 units * $5.50 = $55000

2000 units * $6.10 = $12200

10000 units * $5.50 = $55000

14 8000 units * $5.50 = $44000

2000 units * $6.10 = $12200

2000 units * $5.50 = $11000

18 6000 units * $5 = $30000

2000 units * $6.10 = $12200

2000 units * $5.50 = $11000

6000 units * $5 = $30000

25

6000 units * $5 = $30000

1000 units * $5.50 = $5500

2000 units * $6.10 = $12200

1000 * $5.50 = $5500

31

2000 units * $6.10 = $12200

1000 units * $5.50 = $5500

Cost of goods sold = $79500 Ending inventory = $17700.

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