1. Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system [LO8-1, 8-4]

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

Aug.1	Inventory on hand4,000 units; cost $8.10 each.
8	Purchased 20,000 units for $7.50 each.
14	Sold 16,000 units for $14.00 each.
18	Purchased 12,000 units for $7.00 each.
25	Sold 15,000 units for $13.00 each.
28	Purchased 6,000 units for $5.80 each.
31	Inventory on hand11,000 units.

Exercise 8-14 (Algo) Part 1

Required: a. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method. b. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method.

2. Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

Aug.1	Inventory on hand3,400 units; cost $7.50 each.
8	Purchased 17,000 units for $6.90 each.
14	Sold 13,600 units for $13.40 each.
18	Purchased 10,200 units for $6.40 each.
25	Sold 12,600 units for $12.40 each.
28	Purchased 5,400 units for $5.80 each.
31	Inventory on hand9,800 units.

Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using last-in, first-out (LIFO