Exercise 8-16 (Algo) Comparison of FIFO and LIFO; periodic system (LO8-1, 8-4) Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic Inventory system 600 units $70 each 1,300 units $85 each 1,100 units @ $90 each Besinning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 550 units @ $110 pach 950 units $120 each 400 units $125 each 1. 100 units Required: 1o. 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. 3o. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $60, and the inventory purchased on January 21 had a unit cost of $55. 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 Req 2 Req 3A and 3B Req 3C 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. Reg 1A and 18 Reg 2 Reg 3A and 3B Req 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Sold - Periodic FIFO FIFO 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 FIFO # of units in ending Cost per Ending Inventory unit Inventory Beginning Inventory Purchases 50 January 15 January 21 Total 0 0 SO LIFO Cost of Goods Available for Sale Cost of Goods Cost per # of units Available for unit Sale Cost of Goods Sold - Periodic LIFO of units Cost per Cost of sold u nit Goods Sold Ending Inventory - Periodic LIFO #of units Cost per Ending in ending unit Inventory inventory Beginning inventory Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Reg 2 Req 3A and 38 Req 30 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. 3b. Highest cost of goods sold figure Highest ending inventory balance Reg 1A and 1B Reg 2 Reg 3A and 38 Reg 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. 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 $ 0.00 $ 0.00 Bog Inventory Purchases January 15 January 21 0.00 000 0.00 000 Total 0 $ 0 0 $ 0 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 # of units sold Cost per unit Cost of Goods Sold # of units in ending Inventory Cost per unit Ending Inventory Sale $ 0.00 0.00 $ Bog Inventory Purchases January 15 January 21 000 0.00 000 0.00 ( Req 3A and 3B