Question

Exercise 8-15 (Algo) LIFO; perpetual system (LO8-1, 8-4] Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-4,000 units; cost $8.10 each. 8 Purchased 20,000 units for $7.50 each. 14 Sold 16,000 units for $14.00 each. 18 Purchased 12,000 units for $7.00 each. 25 Sold 15,000 units for $13.00 each. 28 Purchased 6,000 units for $5.80 each. 31 Inventory on hand-11,000 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). Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual LIFO: # of units # of units Cost per unit Cost of Goods Available for Sale Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold # of units in Cost ending inventory per unit Ending Inventory sold Beg. Inventory 4,000 1,000 8.10 $ 32,400 0 I 8.10 $ 8.10 $ 4,000 $ 8.10 $ 32,400 16,000 120,000 7.50 7.50 Purchases: August 8 August 18 August 28 7.50 7.00 5.80 7.50 7.00 7.00 20,000 12,000 6,000 42,000 7.00 150,000 84,000 34,800 301,200 5.80 5.80 5.80 Total 16,000 | $ 120,000 $ 0 $ 120,000 4,000 $ 32,400

Answer 1

Requirement (D) LIFO Cost of goods available for sale Cost of goods sold-Aug 14 Cost of goods sold-Aug 25 Inventory Balance Cost of goods available for sale NO of units Cost per NO of units Cost per unit sold unit Beginning Inventory 4000 $ 8.10 $ 32,400. 00 0 $ 8.10 Purchases : Aug-08 20000 $ 7.50 $1,50,000.00 $16,000.00 $ 7.50 Aug-18 12000 $ 7.00 $ 84,000.00 0 $ 7.00 Aug-28 6000 $ 5.80 $ 34,800.00 0 $ 5.80 Total 42000 $3,01,200.00 16000 $ 20.30 cost of goods Total Cost of NO of units sold Cost per unit Cost of goods sold goods sold $ 0 $ 8.10 $ No of units in ending inventory Cost per unit Ending inventory 4,000.00 $ 8.10 32,400.00 7,500.00 $1,20,000.00 $ $ $1,20,000.00 3000 $ 12000 $ 0 $ 15000 22,500.00 84,000.00 7.50 $ 7.00 $ 5.80 $ $ 1,000.00 $ - $ 6,000.00 $ 11000 7.50 $ 7.00 $ 5.80 $ 34,800.00 74,700.00 1,06,500.00 $ 2,26,500.00