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Chrome File Edit View History Bookmarks People Window Help イ令58%「- E Tue 1:57:08 AM Nupur Kaur Q。Ξ ● N Netflix 4. x E, Forum: Yo × ) Pinterest × Peoria Emx @ Spinbot.c × . Cengage × : Cengage: x D chapter ε × R Facebook x e Accountir x、 Divyot ← ⓘ ezto.mheducation.com/hm.tpx N Netflix 。▶ Non Stop Bhangr 0.00 points Apps O Learn Kirtan : Deh s…-online books Course: F 17 Planeta-.. Cengage NOWV2 | A…。(1) Old Bollywood s.. Other Bookmarks Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2016: Aug.1 Inventory on hand-3,700 units; cost $7.80 each 8 Purchased 18,500 units for $7.20 each. 14 Sold 14,800 units for $13.70 each. 18 Purchased 11,100 units for $6.40 each. 25 Sold 13,800 units for $12.70 each 31 Inventory on hand-4,700 units. Required: Determine the inventory balance Altira would report in its August 31, 2016, balance sheet and the cost of goods sold it would report in its August 2016 income statement using each of the following cost flow methods: (Round “Average 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 Inventory Balance Cost of | # of units Goods Sold in ending Cost per Ending #of cost per Goods units Cost of Goods Sold sold t per unit | | # of units Cost per | Cost of unit Available for units Salc unit sold nventory unit Beg. Inventory Purchases: August 8 August 18 Total 39 12
Expert Answer
Solution.
| Cost of goods available for sale | Cost of goods sold | 14-Aug | Cost of goods sold | 14-Aug | Inventory Balance | |||||||
| Perpetual FIFO: | No of Unit | Costr per Unit | Cost of goods Avl. For sale | No. of unit sold | Cost per Unit | Cost of goods sold | No. of unit sold | Cost per Unit | Cost of goods sold | No. of unit ending Inv. | Cost per Unit | Endning Inventory |
| Beg. Inventory | 3,700 | 7.80 | 28,860 | 3,700 | 7.80 | 28,860 | 7.80 | – | 7.80 | – | ||
| Purchases: | ||||||||||||
| 8-Aug | 18,500 | 7.20 | 133,200 | 11,100 | 7.20 | 79,920 | 7,400 | 7.20 | 53,280 | 7.20 | – | |
| 18-Aug | 11,100 | 6.40 | 71,040 | 6.40 | – | 6,400 | 6.40 | 40,960 | 4,700 | 6.40 | 30,080 | |
| Total | 33,300 | 21.40 | 233,100 | 14,800 | 21.40 | 108,780 | 13,800 | 21.40 | 94,240 | 4,700 | 21.40 | 30,080 |
| Cost of goods available for sale | Cost of goods sold | 14-Aug | Cost of goods sold | 14-Aug | Inventory Balance | |||||||
| Perpetual LIFO: | No of Unit | Costr per Unit | Cost of goods Avl. For sale | No. of unit sold | Cost per Unit | Cost of goods sold | No. of unit sold | Cost per Unit | Cost of goods sold | No. of unit ending Inv. | Cost per Unit | Endning Inventory |
| Beg. Inventory | 3,700 | 7.80 | 28,860 | 7.80 | – | 7.80 | – | 3,700 | 7.80 | 28,860 | ||
| Purchases: | ||||||||||||
| 8-Aug | 18,500 | 7.20 | 133,200 | 3,700 | 7.20 | 26,640 | 13,800 | 7.20 | 99,360 | 1,000 | 7.20 | 7,200 |
| 18-Aug | 11,100 | 6.40 | 71,040 | 11,100 | 6.40 | 71,040 | 6.40 | – | 6.40 | – | ||
| Total | 33,300 | 21.40 | 233,100 | 14,800 | 21.40 | 97,680 | 13,800 | 21.40 | 99,360 | 4,700 | 21.40 | 36,060 |
