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. points 1,150 units @ $80 each 2,400 units @ $95 each 2,200 units @ $100 each Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 1,100 units @ $120 each 1,500 units @ $130 each 950 units @ $135 each 2,200 units Required: 1a. 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. 3a. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $70, and the inventory purchased on January 21 had a unit cost of $65. 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. X Answer is not complete. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Reg 1A and 1B Req 2 Req 3A and 38 Reg 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Answer is not complete. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. points Req 1A and 1B Req 2 Req 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 Inventory Balance - Periodic FIFO FIFO: Cost of Goods Available for Sale - FIFO Cost of # of Cost Goods units per Available unit for Sale 1,150 $ 80.00 $ 92,000 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 1,150 $ 80.00 $ 92,000 $ 80.00 Beg. Inventory Purchases: January 15 January 21 Total 2,400 2,200 5,750 95.00 X 100.00 $ 228,000 220,000 $ 540,000 2,400 2,200 X 5,750 95.00 100.00 228,000 220,000 $ 540,000 95.00 100.00 $ 0 Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO: Cost of Goods Available for Sale - LIFO Cost Cost of # of Goods per units Available unit for Sale 1,150 $ 80.00 $ 92,000 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 1,150 $ 80.00 $ 92,000 $ 80.00 $ 0 Beg. Inventory Purchases: January 15 January 21 Total 0 2,400 2,200 5,750 95.00 X 100.00 228,000 220,000 $ 540,000 2,400 X 2,200 5,750 95.00 100.00 228,000 220,000 $ 540,000 95.00 100.00 0 $ 0
