Question

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

Aug.1	Inventory on hand—3,800 units; cost $7.90 each.
8	Purchased 19,000 units for $7.30 each.
14	Sold 15,200 units for $13.80 each.
18	Purchased 11,400 units for $6.80 each.
25	Sold 14,200 units for $12.80 each.
28	Purchased 5,800 units for $5.80 each.
31	Inventory on hand—10,600 units.

Required:
1. 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 the FIFO method.

Answer 1