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	650	units @ $75 each
Purchases:
January 15	1,400	units @ $90 each
January 21	1,200	units @ $95 each
Sales:
January 5	600	units @ $115 each
January 22	1,000	units @ $125 each
January 29	450	units @ $130 each
Ending inventory, January 31, 2021	1,200	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 $65, and the inventory purchased on January 21 had a unit cost of $60. 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.

1a.Highest cost of goods sold figure1b.Highest ending inventory balance

3a.Highest cost of goods sold figure3b.Highest ending inventory balance

Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Reg 2 Req 3A and 3B Reg 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Sold - Periodic FIFO FIFO Cost of Goods Available for Sale Cost of Goods # of units unit Sale 650 $ 75 $ 48,750 Cost per Available for Cost per of units sold Cost per unit Ending Inventory - Periodic FIFO # of units Ending in ending unit Inventory inventory $ 75 Cost of Goods Sold $ 75 Beginning Inventory Purchases: January 15 January 21 Total 126,000 90 $ 90 1,400 $ 1,200 $ 3,250 90 95 $ $ 95 $ 95 114,000 288,750 $ Cost of Goods Sold - Periodic LIFO LIFO # of units Cost per Cost of Goods Available for Sale Cost of Goods unit Available for Sale 650 $ 75 $ 48,750 # of units sold Cost per unit Cost of Goods Sold Ending Inventory - Periodic LIFO # of units Cost per in ending Ending unit inventory Inventory $ 75 $ 75 Beginning Inventory Purchases: January 15 January 21 Total $ 90 $ 90 1,400 $ 1,200 $ 3,250 90 95 126,000 114,000 288,750 $ 95 $ 95 $ Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Reg 1A and 1B Reg 2 Req 3A and 3B Reg 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Sold - Periodic FIFO Inventory Balance - Periodic FIFO FIFO: Cost of Goods Available for Sale - FIFO Cost of # of Cost per Goods units unit Available for Sale 650 $75.00 $ 48,750 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ 75.00 $ 75.00 Beg. Inventory Purchases: January 15 January 21 Total 65.00 1,400 1,200 3,250 91,000 72.000 65.00 60.00 65.00 60.00 60.00 $ 211.750 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 650 $ 75.00 $ 48.750 Cost per # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory unit Ending Inventory $ 75.00 $ 75.00 Beg. Inventory Purchases January 15 January 21 Total 65.00 91.000 65.00 1,400 1,200 3,250 65.00 60.00 60.00 72.000 60.00 $ 211,750