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Required information Altira Corporation uses a perpetual inventory system
Required information Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018:
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. 31 Inventory on hand-3,200 units.
2. Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using the LIFO method. (Round "Cost per Unit" to 2 decimal places.)
Perpetual LIFO: Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units . g in ending inventory Cost per unit Ending Inventory Beg. Inventory - 0.00 I 0.00 I 0.00 Purchases: August 8 0.00 0.00 0.00 August 18 0.00 0 0.00 0.00 0 Total 0
Expert Solution
| Perpetual LIFO | Cost of Goods available for Sale | Cost of Goods Sold - August 14 | Cost of Goods Sold - August 25 | Inventory Balance | ||||||||
| Number of Unit | Cost per unit | Cost of Goods available | Number of Unit | Cost per unit | Cost of Goods Sold | Number of Unit | Cost per unit | Cost of Goods Sold | Number of Unit | Cost per unit | Ending Balance | |
| Beginning Inventory | 2200 | $6.30 | $13,860.00 | 2200 | $6.30 | $13,860.00 | ||||||
| Purchases: | ||||||||||||
| Aug-08 | 11,000 | $5.70 | $62,700.00 | 8,800 | $5.70 | $50,160.00 | 1,200 | $5.70 | $6,840.00 | 1,000 | $5.70 | $5,700.00 |
| Aug-18 | 6,600 | $5.20 | $34,320.00 | 6,600 | $5.20 | $34,320.00 | 0 | $5.20 | $0.00 | |||
| Total | $19,800.00 | $110,880.00 | $8,800.00 | $50,160.00 | $7,800.00 | $41,160.00 | 3,200 | 19,560 | ||||
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