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

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—3,600 units; cost $7.70 each.
8 Purchased 18,000 units for $7.10 each.
14 Sold 14,400 units for $13.60 each.
18 Purchased 10,800 units for $6.60 each.
25 Sold 13,400 units for $12.60 each.
31 Inventory on hand—4,600 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 2011 income statement using each of the following cost flow methods (Omit the "$" sign in your response):

Perpetual FIFO Begg. Inventory Purchases August 8 August 18 Total Cost of Goods sold August 25 Cost of Goods Available for sale cost of Goods sold August 14 Inventory Balance Cost of of Cost per Cost of of units Cost per Cost of of units cost per unit Goods Sold sold unit Goods in ending inventory of cost per Goods units units unit Available for Inventory sold 7.70 7.70 3,600 7.70 27,720 3,600 7.70 27,720 0 18,000 7.10 127,800 10,800 76,680 7.10 7.10 7.10 6.60 10,800 6.60 6.60 6.60 71,280 226 800 14 400 0 104.400 32,400

Perpetual FIFO Begg. Inventory Purchases August 8 August 18 Total Cost of Goods sold August 25 Cost of Goods Available for sale cost of Goods sold August 14 Inventory Balance Cost of of Cost per Cost of of units Cost per Cost of of units cost per unit Goods Sold sold unit Goods in ending inventory of cost per Goods units units unit Available for Inventory sold 7.70 7.70 3,600 7.70 27,720 3,600 7.70 27,720 0 18,000 7.10 127,800 10,800 76,680 7.10 7.10 7.10 6.60 10,800 6.60 6.60 6.60 71,280 226 800 14 400 0 104.400 32,400

Aug 11 2020 View more View Less

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