Answered step by step
Verified Expert Solution
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-2,000 units; cost $5.30 each.
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,000 units; cost $5.30 each. 8 Purchased 8,000 units for $5.50 each. 14 Sold 6,000 units for $12.00 each. 18 Purchased 6,000 units for $5.60 each. 25 Sold 7,000 units for $11.00 each. 28 Purchased 4,000 units for $5.80 each. 31 Inventory on hand7,000 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 Inventory Balance Perpetual LIFO: Cost per Cost per Cost per # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost of # of units Goods Sold sold Cost of Goods Sold Total Cost of Goods Sold # of units in ending inventory Ending Inventory unit unit unit Beg. Inventory 2,000 $ 5.30 $ 10,600 $ 5.30 $ 0 $ 5.30 $ 0 2,000 $ 5.30 $ 10,600 Purchases: 8,000 5.50 44,000 6,000 5.50 33,000 5.50 1,000 5.50 5,500 August 8 August 18 August 28 6,000 5.60 5.60 0 5.60 5.60 0 4,000 5.80 33,600 23,200 111,400 5.80 0 5.80 5.80 0 Total 20,000 $ 6,000 $ 33,000 0 $ 0 $ 33,000 3,000 $ 16,100
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started