Transcribed Image Text: Required information [The following information applies to the questions displayed below.] Altira Corporation provides the following information related

Excerpt
7.70 2$ 7.70 Beg. Inventory 3,600 $ 7.70 27,720 7.10 Purchases: 7.10 7.10 18,000 7.10 127,800 6.60 August 8 6.60 6.60 10,800 6.60 71,280 5.80 August 18 5.80 5.80 5,600 5.80 32,480 August 28 38,000 $259,280 Total Next > < Prev 6 7 of 8

Transcribed Image Text: Required information
[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-3,600 units; cost $7.70 each.
8 Purchased 18,000 units for $7.10 each.
14 Sold 14, 400 units for $13.60 each.
18 Purchased 10,800 units for $6.60 each.
25 Sold 13,400 units for $12.60 each.
28 Purchased 5,600 units for $5.80 each.
31 Inventory on hand-10,200 units.
Required:
1. Using calculations based on a perpetual inventory system, determine the inventory Balance Altira would report in its August 31, 2021,
palance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method.
Cost of Goods Sold – August 25
Inventory Balance
Cost of Goods Available for Sale
Cost of Goods Sold – August 14
Cost of
Goods
# of units
in
Cost per
End
# of
units
sold
Total Cost of
Goods Sold
Perpetual FIFO:
Cost per
unit
Cost of
# of units
Cost per
Cost of
Cost per
unit
Goods Sold
unit
Inven
# of units
Goods Sold
sold
inventory
Available for
Sale
unit
24
7.70
$
7.70
2$
7.70
Beg. Inventory
3,600
$ 7.70
27,720
7.10
Purchases:
7.10
7.10
18,000
7.10
127,800
6.60
August 8
6.60
6.60
10,800
6.60
71,280
5.80
August 18
5.80
5.80
5,600
5.80
32,480
August 28
38,000
$259,280
Total
Next >
< Prev 6 7 of 8

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