Question

Altira Corporation provides the following information related to its merchandise inventory during the month of August...

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

Aug.1 Inventory on hand—2,700 units; cost $6.80 each.
8 Purchased 13,500 units for $6.20 each.
14 Sold 10,800 units for $12.70 each.
18 Purchased 8,100 units for $5.60 each.
25 Sold 9,800 units for $11.70 each.
28 Purchased 4,700 units for $5.80 each.
31 Inventory on hand—8,400 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).

Homework Answers

Answer #1

Answer- Ending inventory on August 31, 2021 using LIFO method - $51820.

Cost of goods sold on August 31, 2021 using LIFO method - $122860.

Explanation-

LIFO Method
Goods purchased Cost of goods sold Inventory balance
Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance
Aug-01 2700 6.80 18360
Aug-08 13500 6.20 2700 6.80 18360
13500 6.20 83700
Aug-14 10800 6.2 66960 2700 6.80 18360
2700 6.20 16740
Aug-18 8100 5.60 2700 6.80 18360
2700 6.20 16740
8100 5.60 45360
Aug-25 8100 5.60 45360 2700 6.80 18360
1700 6.20 10540 1000 6.20 6200
Aug-28 4700 5.80 2700 6.80 18360
1000 6.20 6200
4700 5.80 27260
Totals 20600 122860 8400 51820
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Altira Corporation provides the following information related to its merchandise inventory during the month of August...
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand—2,700 units; cost $6.80 each. 8 Purchased 13,500 units for $6.20 each. 14 Sold 10,800 units for $12.70 each. 18 Purchased 8,100 units for $5.60 each. 25 Sold 9,800 units for $11.70 each. 28 Purchased 4,700 units for $5.80 each. 31 Inventory on hand—8,400 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report...
ABC applies a periodic inventory system. The following information related to its merchandise inventory during the...
ABC applies a periodic inventory system. The following information related to its merchandise inventory during the month of October 2019 is available: Oct. 1 Inventory on hand 3,000 units; cost €6,10 each         9 Purchase 10,000 units; cost €5,5 each         15 Sale 9,000 units; for €13,0 each         17 Purchase 7,000 units; cost €5,0 each         23 Sale 8,000 units; for €11,0 each         31 Inventory on hand 3,000 units The cost of goods sold reported in ABC’s October...
A. Topeka Merchandising Company uses a perpetual inventory system. During the month of August, it had...
A. Topeka Merchandising Company uses a perpetual inventory system. During the month of August, it had the following purchase and sales transactions. Date Activities Units Acquired At Cost Units Sold at Retail 8/1 Beginning inventory 100 units @$10/unit 8/5 Purchase 40 units @$12/unit 8/10 Sales 60 units @$30/unit 8/15 Purchase 70 [email protected]$13/unit 8/25 Sales 50 units @$35/unit Totals 210 units 110 units Calculate the Costs of Goods Sold for the month of August, if Topeka Merchandising Company uses FIFO cost...
computing Cost of Goods Sold and Ending Inventory Bartov Corporation reports the following beginning inventory and...
computing Cost of Goods Sold and Ending Inventory Bartov Corporation reports the following beginning inventory and purchases for 2017 Beginning inventory 400 @ $12 each $4,800 Inventory purchased 600 @ $14 each 8,400 Cost of goods available 1,000 units $13,200 Bartov sells 600 of these units in 2017. Compute its cost of goods sold for 2017 and the ending inventory reported on its 2017 balance sheet under each of the following inventory costing methods: (Do not round until your final...
Dak Company began operations on August 1, 2019 and entered into the following transactions during 2019:...
Dak Company began operations on August 1, 2019 and entered into the following transactions during 2019: 1. On August 1, Dak Company sold common stock to owners in the amount of $200,000 and borrowed 100,000 from the local bank on a 10-month, 12% note payable. 2. On September 1, Dak Company paid $50,000 cash to purchase supplies. 3. On October 1, Dak Company received $90,000 cash from a customer for services to be performed over the next nine months. 4....
The following lots of Commodity Z were available for sale during the year. Beginning inventory 11...
The following lots of Commodity Z were available for sale during the year. Beginning inventory 11 units at $47 First purchase 18 units at $55 Second purchase 22 units at $57 Third purchase 14 units at $63 The firm uses the periodic system, and there are 22 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method? a.$1,034 b.$3,643 c.$3,621 d.$1,338...
Desmond Consolidated Inc is a leading manufacturer of steel products.  The following inventory data relates to the...
Desmond Consolidated Inc is a leading manufacturer of steel products.  The following inventory data relates to the firms production during the first quarter of 2020: Date of Purchase Tons of Raw Steel Purchased Purchase Price per Ton Total Cost Jan 1 500 $38 $19,000 Jan 15 700 35 24,500 Feb 7 200 33   6,600 Feb 21 450 30 13,500 March 15 350 43 15,050 2200 $78,650 At the end of the first quarter of 2020. Desmond’s internal auditors determined that 1,700...
1. Based upon the following data, estimate the cost of ending inventory using the gross profit...
1. Based upon the following data, estimate the cost of ending inventory using the gross profit method. Sales $882,000 Estimated gross profit rate 32% Beginning inventory $75,700 Purchases (net) 794,000 Merchandise available for sale $869,700 2. Multiple-Step Income Statement On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows: Accounts Receivable $170,000 Inventory $1,019,950 Accumulated Depreciation—Building 762,600 Notes Payable 273,300 Administrative Expenses 559,700 Office Supplies 19,950 Building...
You are the assistant controller for Gnomes Incorporated. After the abysmal failure of their original business...
You are the assistant controller for Gnomes Incorporated. After the abysmal failure of their original business plan, Gnomes has found success by selling various styles of terracotta garden gnomes. You have been asked to prepare the master budget for the quarter ended June 30th, 2016. You have assembled the following information: The garden gnomes sell for $40 each. Recent and forecasted sales (in units) are as follows: January (actual)                                                      800 February (actual)                                                    900 March (actual)                                                     1,800 April                                                                    2,800 May                                                                    3,500...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....