Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,100 units; cost $6.20

image text in transcribed

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,100 units; cost $6.20 each. 8 Purchased 10,500 units for $5.60 each. 14 Sold 8,400 units for $12.10 each. 18 Purchased 6,300 units for $5.40 each. 25 Sold 7,400 units for $11.10 each. 28 Purchased 4,100 units for $5.80 each. 31 Inventory on hand-7,200 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). Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Perpetual LIFO: Cost # of units per unit Cost of Goods Available for Sale # of units sold Cost per Cost of Goods Sold # of units sold unit Cost per unit Total Cost Cost of Goods Sold of Goods Sold # of units in ending inventory Inventory Balance Cost Ending per unit Inventory $ S S Beg. Inventory 2,100 $ 13,020 $ 0 $ 0 $ 6.20 6.20 6.20 6.20 Purchases: August 8 10,500 5.60 58,800 5.60 5.60 5.60 August 18 6,300 5.40 34,020 5.40 0 5.40 5.40 0 August 28 4,100 5.8 23,780 5.80 0 5.80 5.80 Total 23,000 $ 129,620 0 $ 0 0 $ 0 $ 0 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2016

Authors: Jeanette Landin, Paulette Schirmer

2nd edition

978-1259821950, 1259821951, 1259572196, 978-1259572197

More Books

Students also viewed these Accounting questions

Question

. Comparing these conf dence intervals to those in Table

Answered: 1 week ago