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 650 units $75 each Purchases January 15 1,400 units $90 each January 21 1,200 units $95 each Sales January 5 600 units $115 each January 22 1,000 units $125 each January 29 450 units $130 each Ending inventory, January 31, 2021 1,200 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 $65, and the inventory purchased on January 21 had a unit cost of $60 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

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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,

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	650	units @ $75 each
Purchases:
January 15	1,400	units @ $90 each
January 21	1,200	units @ $95 each
Sales:
January 5	600	units @ $115 each
January 22	1,000	units @ $125 each
January 29	450	units @ $130 each
Ending inventory, January 31, 2021	1,200	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 $65, and the inventory purchased on January 21 had a unit cost of $60. 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.