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 950 units @ $60 each 2,000 units @ $75 each 1,800 units @ $80 each 900 units @ $100 each 1,300 units @ $110 each 750 units @ $115 each 1,800 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 $50, and inventory purchased on January 21 had a unit cost of $45. 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. ces 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 1b. Highest ending inventory balance 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 Cost of Goods s of units Cost per Cost per Cost of # of units Available for unit sold unit Sale Goods Sold 950 $ 60 $ 57.000 $ 60 Ending Inventory. Periodic FIFO # of units Cost per in ending Ending unit Inventory inventory $ 60 $ 0 Beginning Inventory Purchases: January 15 January 21 Total 75 75 0 2,000 $ 1,800 $ 4,750 75 80 150,000 144,000 351,000 $ $ $ $ 80 0 80 $ $ 0 0 $ Cost of Goods Sold . Periodic LIFO LIFO Cost of Goods Available for Sale Cost per Cost of Goods of units unit Available for Sale 950 $ 60 S 57.000 # of units Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory S 60 Cost per Cost of unit Goods Sold $ 60 $ 0 sold Beginning Inventory Purchases: January 15 January 21 Total 75 2,000 $ 1,800 $ 4.750 75 80 150,000 144,000 351.000 $ $ 75 80 S $ 80 0 s 0 $ 0 $ Req 1A and 1B Req 2 Req 3A and 3B Req 30 Assume that inventory costs were declining during January. Which method, FIFO or LIFC goods sold figure for January 2021 and highest ending inventory balance? 3a. . Highest cost of goods sold figure Highest ending inventory balance 3b. ces ed unit ok 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 Cost per Goods Cost per # of units Cost of Cost per Ending units unit Available for units unit in ending Goods Sold Inventory Inventory Sale sold Beg. Inventory 950 $ 60.00 $ 57.000 $ 60.00 $ 60.00 $ 0 Purchases January 15 2,000 50.00 100,000 50.00 50.00 0 January 21 1.800 45.00 81,000 45.00 0 45.00 Total 4,750 $ 238,000 $ 0 0 $ Inventory Balance - Periodic LIFO LIFO: Cost of Goods Available for Sale -LIFO Cost of # of Cost per Goods units unit Available for Sale 950 $ 60.00 $ 57.000 Cost of Goods Sold - Periodic LIFO # of units Cost of unit sold Goods Sold ences Cost per # of units in ending inventory Cost per unit Ending Inventory S 60.00 $ 60.00 $ 0 Beg, Inventory Purchases: January 15 January 21 Total 50.00 0 2,000 1,800 4,750 50.00 45.00 100,000 81,000 $ 238,000 50.00 45.00 45.00 0 0 $ 0 0 $ 0