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, 2021850units @ $95 eachPurchases:January 151,800units @ $110 eachJanuary 211,600units @ $115 eachSales:January 5800units @ $135 eachJanuary 221,200units @ $145 eachJanuary 29650units @ $150 eachEnding inventory, January 31, 20211,600units

Required:

1. 3a.Assume that inventory costs weredecliningduring January. The inventory purchased on January 15 had a unit cost of $85, and the inventory purchased on January 21 had a unit cost of $80.All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?
2. 3b.Which method will result in the highest ending inventory balance?
3. 3c.Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.