Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 16. 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. 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 38 Reg 30 Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Cost per Cost of Goods # of units # of units Available for Cost per Cost of unit sold unit Sale Goods Sold 600 $ 30 $ 48.000 $ 80 Ending Inventory - Periodic FIFO # of units In ending Ending Inventory unit Inventory $ 80 $ 0 Cost per Beginning Inventory Purchases January 15 January 21 Total 100 1.000 $95 95,000 800 $ 100 80,000 2,400 $ 223,000 Cost of Goods Available for Sale Cost per Cost of Goods # of units unit Available for Sale 600 $ 80 $ 48.000 $ 95 $ 95 0 $ D $ 100 0 $ 0 0 5 0 Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LiFO of units Cost per Cost of of units sold Ending unit In ending Goods Sold Inventory unit Inventory $ 80 $ $ 80 LIFO Cost per Beginning inventory Purchases January 15 1,000 $ 96 95.000 $ 95 $ 95 Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 16. 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. 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 38 Reg 30 Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Cost per Cost of Goods # of units # of units Available for Cost per Cost of unit sold unit Sale Goods Sold 600 $ 30 $ 48.000 $ 80 Ending Inventory - Periodic FIFO # of units In ending Ending Inventory unit Inventory $ 80 $ 0 Cost per Beginning Inventory Purchases January 15 January 21 Total 100 1.000 $95 95,000 800 $ 100 80,000 2,400 $ 223,000 Cost of Goods Available for Sale Cost per Cost of Goods # of units unit Available for Sale 600 $ 80 $ 48.000 $ 95 $ 95 0 $ D $ 100 0 $ 0 0 5 0 Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LiFO of units Cost per Cost of of units sold Ending unit In ending Goods Sold Inventory unit Inventory $ 80 $ $ 80 LIFO Cost per Beginning inventory Purchases January 15 1,000 $ 96 95.000 $ 95 $ 95
