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Question

re https:/newconnect.mheducation.com/flow/connect.html 3 Test Help Save & Exit Submit Check my work Exercise 8-14 Inventory cost flow methods; perpetual system [LO8-1, 8-4) Altira Corporation uses a perpetual inventory system. The following the month of August 2018 transactions affected its merchandise inventory during Aug.1 Inventory on hand-2,300 units; cost 56.48 each. 8 Purchased 11,se0 units for $5.80 each 14 Sold 9,280 units for $12.3e each. 18 Purchased 6,980 units for $5.00 each. 25 Sold 8,280 units for $11.38 each. 31 Inventory on hand-3, 3ee units. Exercise 8-14 Part 1 Required: 1. 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 FIFO method. (Round "Cost per Unit" to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold-August 14 Cost of Goods Sold August 25 Cost of Goods #of units , cost per |# # of units # of units per : Cost of 'JE. unit Goods Sold in ending Cost per 1 Costiter | Good tof cost of ,ofunits cost Ending unit Inventory | Cost per unite, Available forl units inventoryu Prey 20t 31H Next >

Explanation / Answer

Cost of Goods Available for Sale

Cost of Goods Sold - Aug 14

Cost of Goods Sold - Aug 25

Inventory Balance

Qty

Per Unit

Total

Qty

Per Unit

Total

Qty

Per Unit

Total

Qty

Per Unit

Total

2300

6.4

14720

11500

5.8

66700

2300

6.4

14720

4600

5.8

26680

6900

5.8

40020

6900

5

34500

4600

5.8

26680

3300

5

16500

3600

5

18000

Determination of Value of Closing Stock

Qty

Per Unit

Total

3300

5

16500

Total

16500

Determination of Cost of Goods Sold

Qty

Per Unit

Total

2300

6.4

14720

6900

5.8

40020

4600

5.8

26680

3600

5

18000

Total

99420

Cost of Goods Available for Sale

Cost of Goods Sold - Aug 14

Cost of Goods Sold - Aug 25

Inventory Balance

Qty

Per Unit

Total

Qty

Per Unit

Total

Qty

Per Unit

Total

Qty

Per Unit

Total

2300

6.4

14720

11500

5.8

66700

2300

6.4

14720

4600

5.8

26680

6900

5.8

40020

6900

5

34500

4600

5.8

26680

3300

5

16500

3600

5

18000