6 Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 950 units @ $60 each 1.42 points 2,000 units @ $75 each 1,800 units @ $80 each Skipped Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 900 units @ $100 each 1,300 units @ $110 each 750 units @ $115 each 1,800 units eBook Required: Hint 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 $50, and the inventory purchased on January 21 had a unit cost of $45. 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. Print References Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Reg 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 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 30 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 Reg 1A and 1B Req 2 > Req 1A and 1B Reg 2 Req 3A and 3B Req 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Sold - Periodic FIFO FIFO Cost of Goods Available for Sale Cost of Goods Cost per # of units Available for unit Sale 950 $ 60 $ 57,000 # of units sold Cost per unit Cost of Goods Sold Ending Inventory - Periodic FIFO # of units Cost per Ending in ending unit Inventory inventory $ 60 $ 0 $ 60 Beginning Inventory Purchases: January 15 January 21 Total 2,000 $ 75 150,000 $ 75 $ 75 0 80 144,000 $ 80 0 $ 80 1,800 $ 4,750 $ 351,000 0 $ 0 0 $ 0 Cost of Goods Sold - Periodic LIFO LIFO Cost of Goods Available for Sale Cost of Goods Cost per # of units Available for unit Sale # of units sold Cost per Cost of Goods Sold Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit inventory Inventory $ 60 unit 950 $ 60 $ 57,000 $ 60 $ 0 Beginning Inventory Purchases: 2,000 $ 75 150,000 $ 75 $ 75 January 15 January 21 Total $ 80 144,000 $ 80 $ 80 0 1,800 4,750 $ 351,000 0 $ 0 0 $ 0