Question

Exercise 8-14 Inventory cost flow methods; perpetual system [LO8-1, 8-4]

Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018:

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.
31	Inventory on hand—4,300 units.

Exercise 8-14 Part 1

Required:
1. Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using the FIFO method. (Round "Cost per Unit" to 2 decimal places.)

Perpetual FIFO:	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					$0.00			$0.00	$0		$0.00	$0
Purchases:
August 8					0.00			0.00			0.00	0
August 18					0.00	0		0.00			0.00
Total	0		$0	0		$0	0		$0	0		$0

Answer 1