Exercise 8-16 (Algo) Comparison of FIFO and LIFO; perlodle system (LO8-1,8-4) Alta Skl Company's Inventory records contained the following information regarding its latest ski modet. The company uses a periodic inventory system Beginning inventory, January 1, 2021 Purchases: 500 units @ $60 each January 15 1,100 units @ $75 each See units @ $88 each January 21 Sales: January 5 January 22 450 units $180 each 850 units @ $110 each 300 units @ $115 each January 29 Ending inventory, January 31, 2021 900 units Required: ta. Which method, FIFO OF LIFO, will result in the highest cost of goods sold figure for January 20217 1b. Which method will resurt 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 or $50, and the inventory purchased on January 21 had a unit cost of $45. All other information is the same which method. FIFO OF LIFO. will result in the highest cost of goods sold figure for January 20211 3b. Which method will result in me 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. Reg 1A Reg 3A Reg 2 and 1B Red 3C and 3B Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? Highest cost of goods 1a sold figure 1b. Highest ending Inventory balance Reg 2 > Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. sold per unit Req 1A Req 2 Req 3A and 1B and 3B Reg 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available Cost of Goods Sold Ending Inventory - Periodic for Sale Periodic FIFO FIFO FIFO Cost Cost of #of of Cost of # of units Goods Cost Cost units per units Ending Goods in ending Available unit Sold for Sale per unit Inventory inventory Beginning Inventory 500 $ 60 $ 30.000 $ 60 $ 60 Purchases: January 15 1,100 $ 75 82,500 $ 75 S 75 January 21 900 $ 80 72,000 $ 80 S 80 Total 2.500 $184,500 + Cost of Goods Available Cost of Goods Sold Ending InventoryPeriodic for Sale Periodic LIFO LIFO Cost of LIFO Cost of Cost of of units of Goods Cost Cost units Ending per Goods in ending units Available unit sold Sold per unit Inventory for Sale Inventory Beginning $ 600 $ 60 $ 30,000 60 $ Inventory 60 Purchases: January 15 1100 $175 82 500 $ 75 $ 75 January 21 900 S 80 72.000 $ BO $ 80 Total 2.500 $ 184,500 per unit Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A Req 2 Reg 3A and 1B Reg 30 and 3B 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. Highest cost of goods sold figure Highest ending inventory balance 3b. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A Req 3A and 1B Reg 2 and 3B Reg 30 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 Inventory Balance Periodic FIFO Periodic FIFO FIFO FIFO: Cost of Cost # of of Goods Cost of of units Cost per units units Cost Ending Goods in ending unit Available per unit sold for Sale Sold inventory per unit Inventory S Beg. Inventory 500 60.00 $ 30,000 $ 60.00 $60.00 Purchases: January 15 1.100 50.00 55,000 50.00 50.00 January 21 900 45.00 40,500 145.00 45.00 Total 2,500 S 125,500 Cost of Goods Avallable for Sale - Cost of Goods Sold Inventory Balance - Periodic LIFO Periodic LIFO LIFO LIFO: Cost of Cost #of # of Goods Cost of of units Cost Cost per units units Ending Available Goods in ending unit sold Sold per unit Inventory inventory for Sale $ Beg. Inventory 500 S 30,000 S60.00 60.00 $ 60.00 Purchases January 15 1,100 50.00 155.000 150.00 50.00 January 21 900 65.00 10.500 45.00 45.00 $ Total 2,500 125,500 per unit Reg 3A and 38