21 Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 600 units @ $70 each 1,300 units @ $85 each 1,100 units @ $90 each 550 units $110 each 950 units @ $120 each 400 units @ $125 each 1,100 units Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 1b. Which method will result in the highest ending inventory balance? 2. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. 3a. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $60, and the inventory purchased on January 21 had a unit cost of $55. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 3b. Which method will result in the highest ending inventory balance? 3c. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. inventory using both the FIFO and LIFO methods. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Req 2 Req 3A and 3B Req 3C Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? 1a Highest cost of goods sold figure 1b. Highest ending inventory balance Req 2 > 155 Req 1A and 18 Req 2 Req 3A and 38 Req 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Sale Cost of Goods Sold Periodic FIFO Ending Inventory-Periodic FIFO EIEQ of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per Ending unit Inventory Beginning Inventory 600 $ 70 $ 42,000 $ 70 S 70 Purchases January 15 1,300 $ 85 110,500 $ 85 January 21 Total 1,100 S 90 3,000 99,000 $ 251,500 $ 90 $ 85 $ 90 Cost of Goods Available for Sale Cost of Goods Sold Periodic LIFO Ending Inventory - Periodic LIFO LIFO # of units Cost per unit Cost of Goods Available for Sale # of units Cost per sold unit Cost of Goods Sold # of units in ending Cost per unit Ending Inventory inventory Beginning Inventory Purchases 600 $ 70 $ 42,000 $ 70 $ 70 January 15 1,300 $ 85 110,500 S 85 January 21 1,100 $ 90 99,000 S 90 $ 85 $ 90 Total 3,000 $ 251,500 Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Req 2 Req 3A and 3B Req 3C Assume that inventory costs were declining during January. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? 3a Highest cost of goods sold figure 3b Highest ending inventory balance Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Sale FIFO Cost of Goods Sold-Periodic FIFO Inventory Balance-Periodic FIFO FIFO: # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending Cost per unit Ending Inventory inventory Beg Inventory 600 $ 70.00 $ 42,000 $ 70.00 $ 70.00 Purchases January 15 1,300 60.00 78,000 January 211 Total 1,100 55.00 3,000 60,500 60.00 55.00 60.00 55.00 $ 180,500 LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO: # of units Cost per unit Cost of Goods Available for # of units Cost per unit Cost of Goods Sold # of units in ending Cost per unit Ending Inventory sold inventory Sale Beg Inventory 600 $70.00 $ 42,000 $ 70.00 $ 70.00 Purchases January 15 1,300 60.00 78,000 60.00 January 21 1,100 55.00 60,500 55.00 60.00 55.00 Total 3.000 S 180.500