FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Altira Corporation provides the following information related to its inventory during the month of August 2024:

- August 1: Inventory on hand—2,900 units; cost $7.00 each.
- August 8: Purchased 14,500 units for $6.40 each.
- August 14: Sold 11,600 units for $12.90 each.
- August 18: Purchased 8,700 units for $6.00 each.
- August 25: Sold 10,600 units for $11.80 each.
- August 28: Purchased 4,900 units for $5.80 each.
- August 31: Inventory on hand—8,800 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, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method.
   
Note: Round "Average Cost per Unit" to 2 decimal places.

**Table Overview:**

The table is divided into three main sections: Inventory on hand, Cost of Goods Sold, and Inventory Balance. Each section includes columns to track:

- Number of units
- Cost per unit
- Inventory value
- Average cost per unit
- Cost of Goods Sold
- Ending inventory

The table lists the following events:

- Beginning Inventory
- Purchase - August 8
- Sale - August 14
- Purchase - August 18
- Sale - August 25
- Purchase - August 28

The cells are to be filled with data as per the perpetual inventory method to calculate the average cost per unit, cost of goods sold, and ending inventory.
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Transcribed Image Text:Altira Corporation provides the following information related to its inventory during the month of August 2024: - August 1: Inventory on hand—2,900 units; cost $7.00 each. - August 8: Purchased 14,500 units for $6.40 each. - August 14: Sold 11,600 units for $12.90 each. - August 18: Purchased 8,700 units for $6.00 each. - August 25: Sold 10,600 units for $11.80 each. - August 28: Purchased 4,900 units for $5.80 each. - August 31: Inventory on hand—8,800 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, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method. Note: Round "Average Cost per Unit" to 2 decimal places. **Table Overview:** The table is divided into three main sections: Inventory on hand, Cost of Goods Sold, and Inventory Balance. Each section includes columns to track: - Number of units - Cost per unit - Inventory value - Average cost per unit - Cost of Goods Sold - Ending inventory The table lists the following events: - Beginning Inventory - Purchase - August 8 - Sale - August 14 - Purchase - August 18 - Sale - August 25 - Purchase - August 28 The cells are to be filled with data as per the perpetual inventory method to calculate the average cost per unit, cost of goods sold, and ending inventory.
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