Required information Altira Corporation uses a perpetual inventory system. The f

Question

Required information

Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018:

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.)

Aug.1 Inventory on hand—3,900 units; cost $8.00 each. 8 Purchased 19,500 units for $7.40 each. 14 Sold 15,600 units for $13.90 each. 18 Purchased 11,700 units for $6.60 each. 25 Sold 14,600 units for $12.90 each. 31 Inventory on hand—4,900 units.

Explanation / Answer

Inventory Balance : 31200+7400 = $ 38600

Cost of goods sold : 214120

Purchase cost of goods sold Ending inventory unit cost Total Unit cost Total Unit cost total Aug 1 3900 8 31200 Aug 8 19500 7.4 144300 3900 8 31200 19500 7.4 144300 Aug 14 15600 7.4 115440 3900 8 31200 19500-15600=3900 7.4 28860 Aug 18 11700 6.6 77220 3900 8 31200 3900 7.4 28860 11700 6.6 77220 Aug 25 11700 6.6 77220 3900 8 31200 14600-11700=2900 7.4 21460 3900-2900 = 1000 7.4 7400 Total 214120 31200+7400=38600

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