Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 600 units @ $80 each 1,000 units @ $95 each 800 units @ $100 each Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 400 units @ $120 each 800 units @ $130 each 400 units @ $135 each 800 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 $70, and the inventory purchased on January 21 had a unit cost of $65. 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. 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. Req 1A and 1B Req 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 Available for Sale FIFO Cost of Goods # of units # of units Cost per unit Available for Sale $ 48,000 Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO Cost per Cost of # of units Cost per Ending sold unit Goods Sold | In ending inventory unit Inventory $ 80 600 $ 80 $ 48,000 600 $ 80 Beginning Inventory Purchases: January 15 January 21 Total 1,000 800 2,400 $ $ 95 100 95,000 80,000 223,000 $ $ 95 100 1,000 8 00 ,400 $ $ 95 100 0 0 95,000 80,000 $ 223,000 $ 01 $ 2 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 unit Cost of Goods Sold Ending Inventory - Periodic LIFO # of units Cost per Ending in ending inventory unit Inventory $ 0 Beginning Inventory Purchases: January 15 January 21 Total % $ 0 0 % $ 0 0 0 $ 0 0 $ Req 1A and 1B Req 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 Inventory Balance - Periodic FIFO FIFO: Cost of Goods Available for Sale - FIFO Cost of # of Cost per Goods unit Available for Sale # of units sold Cost per unit Cost per Cost of Goods Sold # of units in ending inventory unit Ending Inventory $ 0.00 $ 0.00 $ Beg. Inventory Purchases: January 15 January 21 Total 0.00 0.00 0.00 0.00 0 $ 0 0 $ 0 0 $ 0 Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO Cost of Goods Available for Sale - LIFO Cost of # of Cost per Goods units unit Available for LIFO: # of units Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Sale sold $ 0.00 $ 0.00 $ Beg. Inventory Purchases: January 15 January 21 Total 0.00 0.00 0 0 0. 000 0.00 $ $ 00 0
