Week 7: Homework
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8
Altira Corporation provides the following information related to its inventory during the month of August 2024:
August 1 Inventory on hand-3,400 units; cost $7.50 each.
August 8 Purchased 17,000 units for $6.90 each.
August 14 Sold 13,600 units for $13.40 each.
August 18 Purchased 10,200 units for $6.40 each.
August 25 Sold 12,600 units for $12.40 each.
August 28 Purchased 5,400 units for $5.80 each.
August 31 Inventory on hand-9,800 units.
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 last-in, first-out (LIFO).
Answer is not complete.
Perpetual LIFO:
Number of units
Cost per unit
Cost of Goods Available for Sale
Number of units sold
Cost per unit
Cost of Goods Sold
Number of units sold
Cost per unit
Cost of Goods Sold
Total Cost of Goods Sold
Number of units in ending inventory
Cost per unit
Ending Inventory
Beginning Inventory
3,400
$ 7.50
$ 25,500
$ 7.50
$ 0
$ 7.50
$ 0
Purchases:
August 8
17,000
6.90
117,300
6.90
6.90
August 18
10,200
6.40
65,280
6.40
0
6.40
August 28
5,400
5.80
31,320
5.80
5.80
Total
36,000
$ 239,400
0
0
0
$ 0
$ 0
