Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 1,350 units @ $100 each 2,800 units @ $115 each 2,600 units @ $120 each Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 1,300 units @ $140 each 1,700 units @ $150 each 1,150 units @ $155 each 2,600 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 $90, and the inventory purchased on January 21 had a unit cost of $85. 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. Cost of Goods Sold - Periodic FIFO Inventory Balance - Periodic FIFO FIFO: Cost of Goods Available for Sale - FIFO Cost of # of Cost per Goods units unit Available for Sale 1,350 2 $ 135,000 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 1,350 $ 100.00 $ 135,000 0 $ 100.00 $ Purchases: 0.00 January 15 January 21 2,800 2,600 6,750 0.00 0. 000 $ 135,000 0 1,350 0.00 2,600 2,600 Total $ 135,000 $ 0 Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO: Cost of Goods Available for Sale -LIFO Cost of # of Cost per Goods units unit unit Available for A Sale ,350 900 000 $ 135,000 # of units sold Cost per Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory unit Beg. Inventory 0 $ 100.00 1,350 $ 100.00 $ 135,000 Purchases: January 15 January 21 115.00 115.00 115.00 2,800 2,600 6,750 322,000 | $ 457,000 000 0.00 0.00 2,600 2,600 Total $ 0 1,350 $ 135,000