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28 Sep 2019
22.Altira Corporation uses a perpetual inventory system. Thefollowing transactions affected its merchandise inventory duringthe month of August 2016:
Aug.1 Inventory onhandâ2,000 units; cost $6.10 each. 8 Purchased 10,000units for $5.50 each. 14 Sold 8,000 units for$12.00 each. 18 Purchased 6,000units for $5.00 each. 25 Sold 7,000 units for$11.00 each. 31 Inventory onhandâ3,000 units.
Required:
Determine the inventory balance Altira would report in itsAugust 31, 2016, balance sheet and the cost of goods sold it wouldreport in its August 2016 income statement using each of thefollowing cost flow methods: (Round "Average Cost per Unit"to 2 decimal places.)
PerpetualFIFO: Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 2,000 $6.10 $12,200 2,000 $6.10 $12,200 $6.10 $0 $6.10 $0 Purchases: August 8 10,000 5.50 55,000 5.50 4,000 5.50 22,000 5.50 0 August 18 6,000 5.00 30,000 5.00 0 3,000 5.00 15,000 3,000 5.00 15,000 Total 18,000 $97,200 2,000 $12,200 7,000 $37,000 3,000 $15,000
PerpetualLIFO: Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 2,000 $6.10 $12,200 $6.10 $0 $6.10 $0 2,000 $6.10 $12,200 Purchases: August 8 10,000 5.50 55,000 5.50 1,000 5.50 5,500 1,000 5.50 5,500 August 18 6,000 5.00 30,000 5.00 0 6,000 5.00 30,000 5.00 0 Total 18,000 $97,200 0 $0 7,000 $35,500 3,000 $17,700
Perpetual Average Inventory on hand Cost of Goods Sold Inventory Balance # of units Cost per unit Inventory Value # of units sold Avg.Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending inventory Beginning Inventory 2,000 $6.10 $12,200 2,000 $6.10 $12,200 Purchase - August 8 10,000 $5.50 55,000 Subtotal Average Cost 12,000 $5.60 $67,200 Sale -August 14 8,000 $5.60 $44,800 Subtotal Average Cost 4,000 $5.60 $22,400 Purchase - August 18 6,000 $5.00 30,000 Subtotal Average Cost 10,000 $5.24 $52,400 Sale - August25 7,000 $5.24 36,680 Total 18,000 $97,200 15,000 $81,480
22.Altira Corporation uses a perpetual inventory system. Thefollowing transactions affected its merchandise inventory duringthe month of August 2016: |
Aug.1 | Inventory onhandâ2,000 units; cost $6.10 each. |
8 | Purchased 10,000units for $5.50 each. |
14 | Sold 8,000 units for$12.00 each. |
18 | Purchased 6,000units for $5.00 each. |
25 | Sold 7,000 units for$11.00 each. |
31 | Inventory onhandâ3,000 units. |
Required: |
Determine the inventory balance Altira would report in itsAugust 31, 2016, balance sheet and the cost of goods sold it wouldreport in its August 2016 income statement using each of thefollowing cost flow methods: (Round "Average Cost per Unit"to 2 decimal places.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jarrod RobelLv2
28 Sep 2019