Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 900 units @ $100 each 1,900 units @ $115 each 1,700 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 850 units @ $140 each 1,250 units @ $150 each 700 units @ $155 each 1,700 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. Reg 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. FIFO Cost of Goods Available for Sale Cost of Goods # of units Cost Available for Sale Cost of Goods Sold - Periodic FIFO # of units Cost per Cost of sold unit Goods Sold Cost per Ending Inventory - Periodic FIFO # of units Ending in ending unit Inventory inventory $ 0 $ unit $ 0 0 Beginning Inventory Purchases: January 15 January 21 Total 0 0 $ $ 0 $ $ 0 0 0 $ 0 0 $ 0 0 $ 0 LIFO # of units Cost per cost of Goods Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO S# of units Cost of Cost per Available for unit sold unit Goods Sold Sale | $ 0 $ 0 Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory | $ 0 Beginning Inventory Purchases: January 15 January 21 Total $ 0 $ 0 $ 0 $ 0 0 0 $ 00$ 00$ 0 ( Req 1A and 1B Req 3A and 3B > 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. Inventory Balance - Periodic FIFO FIFO: Cost of Goods Available for Sale Cost of Goods Sold - Periodic - FIFO FIFO Cost of # of Cost per # of Goods Cost per Cost of units unit Available for | units unit Goods Sold Sale $ 0.00 Cost per # of units in ending inventory Ending Inventory sold $ 0.00 $ Beg. Inventory Purchases: January 15 January 21 Total 0.00 0.00 0. 000 | S $ 0 0 0 0 $ 0 Inventory Balance - Periodic LIFO LIFO: Cost of Goods Available for Sale Cost of Goods Sold - Periodic - LIFO LIFO Cost of | # of # of Goods Cost per Cost per Cost of unit units units Available for sold unit Goods Sold Sale $ 0.00 # of units in ending inventory Cost per unit Ending Inventory $ 0.00 $ Beg. Inventory Purchases: January 15 January 21 Total 0.00 0.00 0.00 0.00 S 00 $ 0
