Question

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand—2,800 units; cost $6.90 each. 8 Purchased 14,000 units for $6.30 each. 14 Sold 11,200 units for $12.80 each. 18 Purchased 8,400 units for $5.80 each. 25 Sold 10,200 units for $11.80 each. 28 Purchased 4,800 units for $5.80 each. 31 Inventory on hand—8,600 units. 2. 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 Average cost method. (Round "Average Cost per Unit" to 2 decimal places.)

Answer 1

Ending Inventory = $50792
Cost of Goods Sold = $133288

W. Avg	Cost of Goods Available for sale			Cost of Goods Sold			Ending Balance
Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Beginning Inventory	2800	$               6.90	$           19,320				2800	$      6.90	$      19,320
'August 8	14000	$               6.30	$           88,200				16800	$      6.40	$ 1,07,520
'August 14				11200	$          6.40	$     71,680	5600	$      6.40	$      35,840
'August 18	8400	$               5.80	$           48,720				14000	$      6.04	$      84,560
'August 25				10200	$          6.04	$     61,608	3800	$      6.04	$      22,952
'August 28	4800	$               5.80	$           27,840				8600	$      5.91	$      50,792
Total	30000		$       1,84,080	21400		$ 1,33,288	8600	$      5.91	$     50,792