Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system 1,450 units 565 each 3,000 units $80 each 2,800 units @ $85 each Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 1,400 units @ $105 each 1,800 units @ $115 each 1,250 units @ $120 each 2.800 units Required: 10. 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 30. 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? 3b. Which method will result in the highest ending inventory balance? Cost per per unit Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Cost of Goods Sold - Periodic Sale FIFO Ending Inventory - Periodic FIFO FIED Cost of # of Cost # of Goods Cost of # of units Cost per units units Available Ending Goods unit in ending unit sold Sold inventory Inventory for Sale Beginning Inventory 1,450 $ 65 $ 94 250 IS 65 $ 65 S 0 Purchases January 15 3,000 S 80 240,000 s 80 $ 80 0 January 21 2.800 $ 85 238,000 Is 85 0 85 Total 7.250 $ 572.250 0 IS 0 0 0 Cost of Goods Available for Cost of Goods Sold - Periodic Sale LIFO Ending Inventory - Periodic LIFO LIFO Cost of Cost #of Goods Cost of # of units Cost per units units Ending Available unit Goods in ending unit sold for Sale Sold Inventory inventory Beginning Inventory 1.450 $ 65 is 94,250 IS 65 $ 0 s 65 Purchases January 15 3,000 $ 80 240.000 80 80 January 21 2 s 25 238 non RS 85 n Cost per per unit $ Purchases January 15 January 21 Total $ 80 $ 0 80 85 A $ 0 3,000 S 80 240,000 2.800 $ 85 238,000 7.250 $ 572,250 Cost of Goods Available for Sale Cost Cost of # of Goods units per Available unit for Sale 1.450 $ 65 $ 94,250 85 0 0 Cost of Goods Sold - Periodic LIFO # of Cost of units unit Goods sold Sold Ending Inventory - Periodic LIFO LIFO Cost per # of units in ending inventory Cost per unit Ending Inventory $ 65 $ 0 65 Beginning Inventory Purchases January 15 January 21 Total 3,000 2.800 7.250 $ 80 $ 85 IS 240,000 238,000 $ 572,250 IS S 80 85 80 85 s 0 0 0 0 . Reg 1A and 1B Reg 2 Reg 3A and 3B Reg 3C of per unit Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Cost of Goods Sold - Periodic Sale - FIFO FIFO Inventory Balance - Periodic Fifo FIFO: of Cost Cost of Goods Cost Cost of # of units per units units Goods Cost Ending in ending Available unit sold per unit for Sale Sold inventory Inventory Beg Inventory 1.450 S 6500 $ 94,250 $ 6500 $ 65 00 $ Purchases January 15 3,000 55 00 165,000 5500 55.00 0 January 21 2.800 140,000 50.00 0 50 00 Total 7.250 $ 399 250 0 0 0 Cost of Goods Available for Cost of Goods Sold Periodic Sale -LIFO LIFO Inventory Balance - Periodic LIFO LIFO (Cost # of Cost of W of Goods Cost of N of units Cost per Cost units Ending Goods Available In ending unit per unit sold for Sale Sold inventory Inventory 50 00 units per unit Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO: Cost of Goods Available for Sale -LIFO Cost of # of Cost Goods units per Available unit for Sale $ 1.450 $ 94,250 65.00 # of units Cost per unit Cost of Goods Sold Cost # of units in ending inventory Ending Inventory sold per unit S 65.00 $ 65.00 IS 0 Beg Inventory Purchases January 15 January 21 Total 165,000 3,000 2.800 7.250 55.00 50.00 55.00 55.00 50.00 140,000 $ 399 250 50.00 0 0 0 0 0
