Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 1,300 units @ $95 each 2,700 units @ $110 each 2,500 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 1,250 units @ $135 each 1,650 units @ $145 each 1,100 units @ $150 each 2,500 units Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 16. 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 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 FIFO Cost per Cost per Available for Cost of Goods Available for Sale Cost of Goods # of units unit Sale 1,300 $ 95 $ 123,500 Cost per # of units sold Ending Inventory - Periodic FIFO # of units Ending in ending Inventory inventory $ 95 Cost of Goods Sold unit unit $ 95 Beginning Inventory Purchases January 15 January 21 Total $ $ 110 2,700 $ 110 2,500 $ 115 6,500 297,000 287,500 708,000 110 115 $ $ 115 $ Cost of Goods Sold - Periodic LIFO LIFO Cost of Goods Available for Sale Cost of Goods # of units unit Sale 1,300 $ 95 $ 123,500 Cost per Available for Cost per # of units sold Cost of Goods Sold Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory $ 95 unit $ 95 Beginning Inventory Purchases: January 15 January 21 Total $ 110 2,700 $ 110 2,500 $ 115 6,500 297,000 287,500 708,000 110 115 $ $ 115 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 Inventory Balance - Periodic FIFO FIFO: Cost of Goods Available for Sale FIFO Cost of Goods units unit Available for Sale 1.300 $ 95.00 $ 123.500 # of Cost per Cost per # of units sold Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory unit $ 95.00 $ 95.00 Beg. Inventory Purchases: January 15 January 21 Total 2.700 85.00 85.00 85.00 80.00 229,500 200.000 $ 553,000 80.00 2,500 6,500 80.00 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 1,300 $ 95.00 $ 123,500 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ 95.00 $ 95.00 Beg. Inventory Purchases: January 15 January 21 Total 2.700 2,500 6,500 85.00 80.00 229,500 200.000 553,000 85.00 80.00 85.00 80.00 $
