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I only need the LIFO part, thank you. Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses
I only need the LIFO part, thank you.
Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 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. Cost of Goods Sold - Periodic LIFO Inventory Balance - Periodic LIFO LIFO: Cost Cost of Goods Available for Sale - LIFO Cost of Cost # of Goods per units Available unit for Sale $ 1,150 $ 92,000 80.00 # of units sold Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory per unit Beg. Inventory 1,150 X $ 80.00 $ 92,000 $ 80.00 $ 0 Purchases: 2,400 70.00 70.00 70.00 0 January 15 January 21 65.00 168,000 143,000 $ 403,000 65.00 0 2,200 5,750 65.00 Total 1,150 $ 92,000 0 $ 0Step by Step Solution
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