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 Purchases: January 15 January 21 Sales: January 5 600 units @ $80 each 1,000 units @ $95 each 800 units @ $100 each 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. Req 1A and 1B Req 2 Req 3A and 3B Req 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 Req 1A and 1B Req 2 Req 3A and 3B Req 3C Cost of Goods Available for Sale Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Ending Inventory - Periodic FIFO Cost of Goods Sold - Periodic FIFO FIFO # of units Cost per unit Cost of Goods Available for # of units sold Cost per unit Cost of Goods Sold # of units in ending Cost per unit Sale inventory Beginning Inventory Purchases: 600 $ 80 $ 48,000 $ 80 $ 60 Ending Inventory 80 January 15 January 21 1,000 $ 95 95,000 $ 95 EA 800 $ 100 80,000 100 EA 95 100 Total 2,400 $ 223,000 LIFO # of units Cost per unit Cost of Goods Available for Sale Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Beginning Inventory 600 $ 80 $ 48,000 80 $ 60 Ending Inventory 80 Purchases: January 15 January 21 1,000 $ 95 95,000 95 800 $ 100 80,000 100 Total 2,400 $ 223,000 $ 95 100 Req 1A and 1B Req 2 Req 3A and 3B Req 3C Assessment Tool iFrame Accume that inventory costs were declining during January. Which method, FIFO or LIFO, will result in the highest cost of you win ignor January 2021 and highest ending inventory balance? 3a. Highest cost of goods sold figure 3b. Highest ending inventory balance Req 1A and 1B Req 2 Req 3A and 3B Req 3C Cost of Goods Available for Sale - FIFO Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Inventory Balance - Periodic FIFO Cost of Goods Sold - Periodic FIFO FIFO: # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 600 $ 80.00 $ 48,000 $ 80.00 $ 80.00 Beg. Inventory Purchases: January 15 1,000 70.00 70,000 January 21 Total 800 2,400 65.00 52,000 $170,000 70.00 65.00 70.00 65.00 -LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO: # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 600 $80.00 $ 48,000 $ 80.00 $ 80.00 Beg. Inventory Purchases: January 15 1,000 January 21 Total 800 2,400 70.00 65.00 70,000 70.00 52,000 65.00 $ 170,000 70.00 65.00