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	1,000	units @ $65 each
Purchases:
January 15	2,100	units @ $80 each
January 21	1,900	units @ $85 each
Sales:
January 5	950	units @ $105 each
January 22	1,350	units @ $115 each
January 29	800	units @ $120 each
Ending inventory, January 31, 2021	1,900	units

Required:

1. 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

2. 1b. Which method will result in the highest ending inventory balance?

3. 2. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

4. 3a. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $55, and the inventory purchased on January 21 had a unit cost of $50. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

5. 3b. Which method will result in the highest ending inventory balance?

6. 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.

FIFO	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic FIFO			Ending Inventory - Periodic 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
Beginning Inventory	1,000	$65	$65,000	1,000	$65	$65,000		$65	$0
Purchases:
January 15	2,100	$80	168,000	2,100	$80	168,000		$80	0
January 21	1,900	$85	161,500		$85	0		$85
Total	5,000		$394,500	3,100		$233,000	0		$0
LIFO	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic LIFO			Ending Inventory - Periodic 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
Beginning Inventory	1,000	$65	$65,000		$65	$0		$65
Purchases:
January 15	2,100	$80	168,000		$80			$80
January 21	1,900	$85	161,500	1,900	$85	161,500		$85	0
Total	5,000		$394,500	1,900		$161,500	0		$0

• 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 - FIFO			Cost of Goods Sold - Periodic FIFO			Inventory Balance - Periodic 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
Beg. Inventory	1,000	$65.00	$65,000		$65.00			$65.00	$0
Purchases:
January 15	2,100	55.00	115,500		55.00			55.00	0
January 21	1,900	50.00	95,000		50.00	0		50.00
Total	5,000		$275,500	0		$0	0		$0
LIFO:	Cost of Goods Available for Sale - LIFO			Cost of Goods Sold - Periodic LIFO			Inventory Balance - Periodic 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
Beg. Inventory	1,000	$65.00	$65,000		$65.00			$65.00	$0
Purchases:
January 15	2,100	55.00	115,500		55.00			55.00	0
January 21	1,900	50.00	95,000		50.00	0		50.00
Total	5,000		$275,500	0		$0	0		$0