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

inventory system.

Required:

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

Which method will result in the highest ending inventory balance? Why?

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

$3.$ Now assume that inventory costs were declining during January. The inventory purchased on January $15$ had a unit cost of $$74,$ and

the inventory purchased on January $21$ had a unit cost of $$68.$ All other information is the same. Repeat requirements $1$ and $2.$

Beginning inventory, January $1,$ year $1840$ units @ $$85$ each

Purchases:

January $151,000$ units @ $$94$ each

January $212,350$ units @ $$106$ each

Sales:

January $5575$ units @ $$110$ each

January $221,250$ units @ $$140$ each

January $29900$ units @ $$160$ each

Ending inventory, January $31,$ year $11,465$ units Required:

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

Which method will result in the highest ending inventory balance? Why?

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

$3.$ Now assume that inventory costs were declining during January. The inventory purchased on January $15$ had a unit cost of $$74,$ and

the inventory purchased on January $21$ had a unit cost of $$68.$ All other information is the same. Repeat requirements $1$ and $2.$