Beginning inventory, January 1, 2021	1,000	units @ $65 each
Purchases:
January 15	2,100	units @ $80 each
January 21	1,900	units @ $85 each
Sales:
January 5	950	units @ $105 each
January 22	1,350	units @ $115 each
January 29	800	units @ $120 each
Ending inventory, January 31, 2021	1,900	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.

4. 3a. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $55, and the inventory purchased on January 21 had a unit cost of $50. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

5. 3b. Which method will result in the highest ending inventory balance?

6. 3c. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.