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	600	units @ $70 each
Purchases:
January 15	1,300	units @ $85 each
January 21	1,100	units @ $90 each
Sales:
January 5	550	units @ $110 each
January 22	950	units @ $120 each
January 29	400	units @ $125 each
Ending inventory, January 31, 2021	1,100	units

Required:

1. 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

2. 1b. Which method will result in the highest ending inventory balance?

3. 2. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

4. 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?

5. 3b. Which method will result in the highest ending inventory balance?

6. 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. Reg 1A and 1B Reg 2 Reg 3A and 3B Reg 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 Reg 1A and 1 Reg 2 > Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Reg 1A and 18 Reg 2 Reg 3A and 38 Reg 30 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 FIFO Cost of Goods # of units Cost per # of units # of units Cost per Cost of Available for Cost per unit Ending in ending sold unit Goods Sold Sale unit inventory Inventory Beginning Inventory 600 S 70 S 42.000 S 70 S 70 Purchases: January 15 1,300 S 85 110,500 S 85 S 85 January 21 1.100 S 90 99,000 S 90 S 90 Total 3.000 S 251.500 LIFO Cost per Cost per Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost of Goods # of units Available for # of units Cost of unit Sale sold unit Goods Sold 800 S 70 S 42.000 S 70 Ending Inventory - Periodic LIFO # of units Cost per in ending Ending unit Inventory inventory S 70 Beginning Inventory Purchases: January 15 January 21 Total 1,300 S s S 85 90 85 90 110.500 99,000 251,500 85 90 S S 1.100 3,000 S S Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Reg 1A and 18 Reg 2 Req 3A and 38 Reg 30 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 Highest ending inventory balance 3b. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 18 Reg 2 Req 3A and 3B Reg 30 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 Inventory Balance - Periodic FIFO FIFO FIFO: Cost of #of # of # of units Cost per Goods Cost per Cost of Cost per Ending units units unit Available for unit Goods Sold in ending unit sold Inventory Sale inventory Beg. Inventory 800 S 70.00 s 42.000 S 70.00 S 70.00 Purchases: January 15 1,300 60.00 78,000 60.00 60.00 January 21 1.100 55.00 60,500 55.00 55.00 Total 3,000 S 180.500 Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO: Cost of Goods Available for Sale -LIFO Cost of # of Goods units unit Available for Sale 800 S 70.00 S 42.000 Cost per #of units sold Cost per Cost per # of units in ending inventory Cost of Goods Sold unit unit Ending Inventory S 70.00 S 70.00 Beg. Inventory Purchases: January 15 January 21 Total 60.00 1,300 1,100 3,000 60.00 55.00 78,000 60,500 180.500 60.00 55.00 55.00 $