Required information Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system (LO8-1, 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 2021: Aug.1 Inventory on hand-3,200 units; cost $7.30 each. 8 Purchased 16,000 units for $6.70 each. 14 Sold 12,800 units for $13.20 each. 18 Purchased 9,600 units for $6.20 each. 25 Sold 11,800 units for $12.20 each. 28 Purchased 5,200 units for $5.80 each. 31 Inventory on hand-9,400 units. 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. Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual FIFO: Cost per # of units Cost per unit Cost of Goods Available for Sale $ 23,360 # of units sold Cost per unit Cost of Goods Sold # of units sold unit Cost of Goods Sold Total Cost of Goods Sold # of units in inventory Cost per unit Ending Inventory 3,200 $ 7.30 $ 7.30 $ 7.30 $ 0 $ 7.30 $ 0 6.70 6.70 0 Beg. Inventory Purchases: August 8 August 18 August 28 Total 16,000 9,600 5,200 6.70 6.20 6.70 6.20 6.20 0 107,200 59,520 30,160 $ 220,240 6.20 5.80 5.80 5.80 0 5.80 34,000 0 $ 0 0 $ 0 $ 0 $ 0 ! Required information Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system (LO8-1, 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 2021: Aug. 1 Inventory on hand-3,200 units; cost $7.30 each. 8 Purchased 16,000 units for $6.70 each. 14 Sold 12,800 units for $13.20 each. 18 Purchased 9,600 units for $6.20 each. 25 Sold 11,800 units for $12.20 each. 28 Purchased 5,200 units for $5.80 each. 31 Inventory on hand-9,400 units. Exercise 8-14 (Algo) Part 2 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.) Perpetual Average Inventory on hand Cost per Inventory # of units unit Value Cost of Goods Sold # of units Avg.Cost Cost of sold per unit Goods Sold Inventory Balance # of units in Cost per Ending inventory unit inventory Beginning Inventory Purchase - August 8 0 $ 0 Sale - August 14 Purchase - August 18 0 $ 0 Sale - August 25 Purchase - August 28 Total 0 $ 0 $ 0 0 $ 0
