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 merchandise inventory during the month
of August 2021:
Aug.1 Inventory on hand-2,200 units; cost $6.30 each.
8 Purchased 11,000 units for $5.70 each.
14 Sold 8,800 units for $12.20 each.
18 Purchased 6,600 units for $5.20 each.
25 Sold 7,800 units for $11.20 each.
28 Purchased 4,200 units for $5.80 each.
31 Inventory on hand-7,400 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
# of
units
sold
Cost
Cost
Total Cost
of Goods
Sold
Cost
Cost of Goods
Sold
# of units
sold
Cost of
Goods Sold
# of units in ending
inventory
# of
per
unit
Cost of Goods
Available for Sale
per
unit
per
unit
per
unit
Ending
Inventory
units
Beg.
Inventory
2,200
$6.30
13,860
2,200
$ 6.30
13,860
$ 6.30
X $ 6.30
Purchases:
August 8
11,000
5.70
62,700
6.600 X
5.70
37,620
4.400 X
5.70
25,080
5.70
August 18
6,600
5.20
34,320
5.20
3,400 X
5.20
17,680
3,200
5.20
16,640
August 28
4,200
5.8
24,360
5.80
5.80
4,200
5.80
24.360
Total
24,000
135.240
8,800
2$
51,480
7,800
42,760
94,240
7,400
41,000
5555
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Transcribed Image Text:Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,200 units; cost $6.30 each. 8 Purchased 11,000 units for $5.70 each. 14 Sold 8,800 units for $12.20 each. 18 Purchased 6,600 units for $5.20 each. 25 Sold 7,800 units for $11.20 each. 28 Purchased 4,200 units for $5.80 each. 31 Inventory on hand-7,400 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 # of units sold Cost Cost Total Cost of Goods Sold Cost Cost of Goods Sold # of units sold Cost of Goods Sold # of units in ending inventory # of per unit Cost of Goods Available for Sale per unit per unit per unit Ending Inventory units Beg. Inventory 2,200 $6.30 13,860 2,200 $ 6.30 13,860 $ 6.30 X $ 6.30 Purchases: August 8 11,000 5.70 62,700 6.600 X 5.70 37,620 4.400 X 5.70 25,080 5.70 August 18 6,600 5.20 34,320 5.20 3,400 X 5.20 17,680 3,200 5.20 16,640 August 28 4,200 5.8 24,360 5.80 5.80 4,200 5.80 24.360 Total 24,000 135.240 8,800 2$ 51,480 7,800 42,760 94,240 7,400 41,000 5555
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