Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic Inventory system 850 units @ $95 each 1,800 unit 110 each 1,600 units @ $115 each Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 800 units @ $135 each 1,200 units @ $145 each 650 units @ $150 each 1,600 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 $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? 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. 10 Check my work 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 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 858 units @ $95 each 1,800 units @ $110 each 1,600 units @ $115 each 800 units @ $135 each 1,200 units @ $145 each 650 units @ $150 each 1,600 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 $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? 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 bth the FIFO and LIFO methods. Req 1A and 10 Reg 2 Req 3A and 38 Reg 3C Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? 1a. Highest cost of goods sold figure 16. Highest ending inventory balance Reg 2 > 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 per Cost of Goods Available for Sale Cost per Cost of Goods # of units unit Available for Sale 850 $ 95 $ 80,750 # of units sold Cost of Goods Sold Ending Inventory - Periodic FIFO of units Cost per Ending in ending unit Inventory inventory $ 95 $ 0 unit $ 95 Beginning Inventory Purchases January 15 January 21 Total 110 0 1,800 $ 110 1,600 $ 115 4,250 198,000 184,000 462,750 $ $ $ $ 110 115 115 0 0 $ 0 $ 0 $ o Cost of Goods Sold . Periodic LIFO LIFO Cost of Goods Available for Sale Cost per Cost of Goods #of units Available for Sale 850 S 95 $ 80.750 # of units sold Cost per unit Cost of Goods Sold Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory Inventory $ 95 unit $ 95 $ 0 $ $ 110 Beginning Inventory Purchases: January 15 January 21 Total 1,800 $ 110 1,600 S 115 4,250 198,000 184,000 462.750 110 115 $ $ 0 115 $ 0 $ 0 0 $ 0 wC USL suuruary Mein Y US woulu reco Req 1A and 18 Reg 2 Reg 3A and 38 Reg 3C Assume that inventory costs were declining during January. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? 3b. Highest cost of goods sold figure Highest ending inventory balance Cost per Cost per Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Sale Cost of Goods Sold - Periodic - FIFO FIFO Inventory Balance - Periodic FIFO FIFO Cost of # of #of Goods Cost per # of units Cost of units units unit Ending Available for In ending unit Goods Sold unit sold Sale Inventory Inventory Beg Inventory 850 $95.00 $ 80,750 $ 95.00 $ 95.00 $ 0 Purchases: January 15 1,800 85.00 153,000 85.00 85.00 0 January 21 1,600 80.00 128,000 80.00 0 B0.00 Total 4,250 $361,750 0 $ 0 0 $ 0 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 850 $ 95.00 $ 80.750 Cost per Cost per # of units sold Cost of Goods Sold # of units In ending Inventory unit Ending Inventory unit $ 95.00 $ 95.00 $ 0 0 Beg. Inventory Purchases: January 15 January 21 Total 1,800 1,600 4,250 85.00 80.00 153,000 128,000 $361,750 85.00 80.00 85.00 80.00 0 $ 0 0 0 0 $ 0