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Chapter 8 Exercises 6 Part 1 of 2 Required information Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system (L08-1, 8-4) The following information applies to the questions displayed below) Altira Corporation provides the following information related to its merchandise inventory during the month of August 2.5 points 2021 Book Aug. 1 Inventory on hand-2,900 unito cost $7.00 each. B Purchased 14,500 units for $6.40 ench 14 Sold 11,600 units tor $12.90 each 18 Purchased 8,700 units for $6.00 each 25 Sold 10,600 units for $11.90 each 28 Purchased 4,900 units for $5.80 each 31 Inventory on hand-8,800 units. Hint 102 11 Inventory on hand-,800 units 5 Exercise 8-14 (Algo) Part 1 Required: 1. 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. Back Cost of Good Sold August 14 Cost of Goods Sold - August 23 Cost of Goods Available for sale Cost of of uns Cost per Goods unit Available for Pers: Cooper Total cost of Coster of units sold Cost of Goods sold of unit Cost per sod Cost of Good Sold Ooode od in inventory LE 700 0 1 7005 1 700 20,300 2,000 5700 References Bewentory Purchase August August 18 August 28 Total 0:40 6.00 5180 14.500 1.700 4,800 31.000 6.40 5.00 5.00 640 8.00 5.80 02.000 12.200 28,420 $ 190,720 640 6.00 5.80 0 0 5 $ ol OS $ Exercise 8-14 (Algo) Part 2 Part 2012 2. 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 (Round "Average Cost per Unit" to 2 decimal places.) 2.5 po Perpetual Avenge Inventory on hand Cost por Inventory units unit Valce 3,500 $ 7.60 $ 26.600 17.500 $ 7.00 3 122.500 per unit Beginning Inventory Purchase-August 8 Answer is complete but not entirely correct. Cost of Goods Sold Inventory Balance #of Cost of of units Cost Avg. Cost Ending units Goods in per sold Sold inventory unit Inventory 3,500 S 7.60 $ 26,600 17.500 S 7.00 $ 122,500 21.000 $ 149.100 14,000 $ 7.10 $ 99,400 7.000 $ 7.10 $49.700 10.500 $ 0.80 $ 71400 17.500 $ 121,100 13,000 $ 6.92 89.960 4,500 S 6.92 $ 31,140 5,500 $ 5.80 $ 31,900 $ 189,360 10,000 $ 63,040 Sale - August 14 Purchase. August 18 10,500 $ 6.80 71400 Sale - August 25 Purchase - August 28 Total 5.500 $ 5.80 37,000 31.900 $ 252 400