Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 650 units @ $75 each 1,400 units @ $90 each 1,200 units @ $95 each Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 600 units @ $115 each 1,eee units @ $125 each 450 units $130 each 1,200 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 $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? 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. Req 1A and 1B Reg 2 Reg 3A and 3B Req3C 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 LIFO FIFO Reg 1A and 1 Req 2 > Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Reg 1A and 1B Reg 2 Reg 3A and 3B Reg 3C 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 Ending Inventory - Periodic FIFO FIFO Cost of Goods # of units Cost per # of units # of units Cost of unit Available for Ending sold Sale unit in ending Goods Sold unit inventory Inventory Beginning Inventory 850 S 75 S 48,750 S 75 S 75 S Purchases: January 15 1,400 90 120,000 s 90 S 90 0 January 21 1.200 S 95 114,000 S 95 0 S 95 Total 3,250 S 288,750 S 0 0 S 0 0 on LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost of Goods # of units # of units Cost of unit Sale sold unit Goods Sold 850 S 75 S 48.750 S 75 S Cost per Available for Cost per Ending Inventory - Periodic LIFO # of units Ending in ending unit inventory Inventory S 75 Cost per Beginning Inventory Purchases January 15 January 21 Total S 90 S S 90 1,400 1.200 3,250 90 95 S 120,000 114,000 288,750 95 S S 95 0 0 S 0 0 S 0 Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Reg 2 Reg 3A and 3B 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? 3a Highest cost of goods sold figure Highest ending inventory balance 3b. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Reg 1A and 1B Reg 2 Reg 3A and 3B Reg 3C Cost per Cost per Cost 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 Sale Cost of Goods Sold - Periodic - FIFO FIFO Inventory Balance - Periodic FIFO FIFO Cost of # of Goods # of Cost of # of units Ending units unit Available for units unit Goods Sold in ending Inventory sold Sale inventory Beg. Inventory 650 $ 75.00 S 48,750 S 75.00 S 75.00 $ 0 Purchases: January 15 1,400 65.00 91,000 65.00 65.00 0 January 21 1,200 60.00 72,000 60.00 0 60.00 Total 3.250 S 211,750 0 S 0 0 S 0 Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO Cost of Goods Available for Sale -LIFO Cost of # of Goods units unit Available for Sale 650 S 75.00 $ 48,750 Cost per # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory S 75.00 S 75.00 S 0 Beg. Inventory Purchases: January 15 January 21 Total 65.00 0 1,400 1.200 3,250 65.00 60.00 91,000 72,000 65.00 60.00 0 60.00 S 211,750 0 S 0 0 S 0