Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system.

eginning inventory, January 1, 2021	1,400	units @ $60 each
Purchases:
January 15	2,900	units @ $75 each
January 21	2,700	units @ $80 each
Sales:
January 5	1,350	units @ $100 each
January 22	1,750	units @ $110 each
January 29	1,200	units @ $115 each
Ending inventory, January 31, 2021	2,700	units

Required:

1. 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

2. 1b. Which method will result in the highest ending inventory balance?

3. 2. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

1. 3a. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $50, and the 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?

2. 3b. Which method will result in the highest ending inventory balance?

3. 3c. 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 # of units Ending Inventory - Periodic FIFO # of units Cost per Ending in ending inventory unit Inventory Cost per unit Cost per unit Available for Sale Cost of Goods Sold sold Beginning Inventory Purchases: January 15 January 21 Total Cost of Goods Sold - Periodic LIFO LIFO Cost of Goods Available for Sale Cost of Goods # of units Cost per Available for unit Sale # of units sold Cost per unit cost of Goods Sold Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory Beginning Inventory Purchases: January 15 January 21 Total Cost of Goods Sold - Periodic FIFO Inventory Balance - Periodic FIFO FIFO: Cost of Goods Available for Sale - FIFO Cost of # of Cost per Goods units unit Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory Purchases: January 15 January 21 Total 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 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory Purchases: January 15 January 21 Total