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 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 Sold - Periodic FIFO Cost of Goods # of units # of units Cost of unit sold unit Sale Goods Sold 600 $ 80 $ 48,000 $ 80 Cost per Available for Cost per Cost per Ending Inventory - Periodic FIFO # of units Ending in ending unit Inventory inventory 600 $ 80 $ 48,000 Beginning Inventory Purchases: January 15 January 21 Total 95,000 $ 95 $ 95 0 1,000 $ 95 800 $ 100 2,400 $ 100 0 0 $ 100 80,000 223,000 $ 0 $ 0 600 $ 48,000 LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO - Cost of Goods Cost per Cost per # of units Cost of # of units Available for unit sold Sale Goods Sold unit 600 $ 80 $ $ 48,000 $ 80 $ 0 Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory $ 80 Beginning Inventory Purchases: January 15 January 21 Total 1,000 $ 95 $ 95 $ 95 800 $ 100 95,000 80,000 223,000 $ 100 $ 100 0 2,400 $ 0 $ 0 $ 0 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. Reg 1A and 1B Reg 2 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 Goods # of Cost per Cost of units units unit Available for sold unit Goods Sold Sale 600 $ $ 80.00 $ 48,000 $ 80.00 # of units in ending inventory Cost per unit Ending Inventory 600 $ 80.00 $ 48,000 Beg. Inventory Purchases: January 15 January 21 Total 1,000 70.00 70.00 0 70.00 65.00 800 70,000 52,000 $ 170,000 65.00 ol 65.00 2.400 0 $ 0 600 $ 48,000 Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO: Cost of Goods Available for Sale -LIFO Cost of # of Cost per Goods units unit Available for Sale 600 $ 80.00 $ 48,000 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ 80.00 $ 80.00 $ 0 Beg. Inventory Purchases: January 15 January 21 Total 70.00 0 1,000 800 2,400 70.00 65.00 70,000 52,000 $ 170,000 65.00 70.00 65.00 of 0 0 $ 0 $ 0