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, 2016	1,150	units	@	$	80	each
Purchases:
January 15	2,400	units	@	$	95	each
January 21	2,200	units	@	$	100	each
Sales:
January 5	1,100	units	@	$	120	each
January 22	1,500	units	@	$	130	each
January 29	950	units	@	$	135	each
Ending inventory, January 31, 2016	2,200	units

Required:

1.1

Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2016?

	LIFO
	FIFO

1.2

Which method will result in the highest ending inventory balance?

	LIFO
	FIFO

2.	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 Cost per CostofGoods!#0f units |#0f units Cost of . in ending # of units Cost of Goods Sold n ending Cost per Ending FIFO Cost per Available for sold Cost per Cost per unit # of units per unit unit Inventory Sale inventory 0 S 0 S Beginning Inventory Purchases January 15 January 21 Total Cost of Goods Available for Sale Cost of Goods Sold Periodic LIFO Ending Inventory Periodic LIFO #Of units Cost per Ending Ending LIFO Cost per Available for sold Sale Cost of Goods Sold in ending Cost per #Of units # of units cost per costof Goods Cost per unit unit unit Inventory O S Beginning Inventory Purchases 0 $ January 15 January 21 Total