Question

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand—3,300 units; cost $7.40 each. 8 Purchased 16,500 units for $6.80 each. 14 Sold 13,200 units for $13.30 each. 18 Purchased 9,900 units for $6.20 each. 25 Sold 12,200 units for $12.30 each. 28 Purchased 5,300 units for $5.80 each. 31 Inventory on hand—9,600 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using last-in, first-out (LIFO).

Answer 1

Answer:

Inventory account balance $61,190

Cost of goods sold $166,780

Explanation:

date        reference       units          unit price        total      

8/01         beg. inv.         3,300        7.40                24,420

8/08        purchase        16,500      6.80                112,200            

8/14         sales               -13,200     6.80                (89,760)

8/18         purchase        9,900       6.20                61,380

8/25        sales               -9,900      6.20                (61,380)

8/25        sales               -2,300      6.80                (15,640)

8/28        purchase        5,300       5.80                30,740

8/31         ending inv.     9,600                               61,190