Return Alta Skl Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 1,300 units @ $95 each 2,700 units $110 each 2.500 units $115 each 1,250 units @ $135 each 1,650 units $145 each 1,100 units $150 each 2,500 units Required: to. 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 30. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of 585, and the Inventory purchased on January 21 had o unit cost of $80. 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. Req 1A and 18 Reg 2 Req 3A and 38 Req 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Cost of Goods Sold - Periodic Sale FIFO Ending Inventory - Periodic FIFO FIFO Cost of # of Cost Goods #of Cost of Cost #of units units per units Available Goods Cost Ending in ending unit per unit sold Sold Inventory for Sale per unit Inventory Beginning Inventory 1,300 $ 95 $ 123,500 1,300 S 95 $ 123,500 0$ 95 s 0 Purchases January 15 2,700 $ 110 297 000 2,700 $ 110 297 000 0 s 110 0 January 21 2,500 $ 115 287,500 0$ 115 0 2,500 $ 115 287,500 6,500 $ 708,000 4,000 $ 420,500 2,500 $ 287,500 Cost of Goods Available for Cost of Goods Sold - Periodic Sale LIFO Ending Inventory - Periodic LIFO LIFO Cost of Cost # of # of Goods Cost Cost of # of units per units units Cost Goods Ending Available in ending unit sold Sold per unit Inventory Inventory for Sale Beginning Inventory 1,300 $ 95 $ 123,500 0ls 95 $ 0 1,300S 95 $ 123,500 Purchases January 15 2,700 $ 110 297,000 0X S 110 0X S 110 January 21 2,500 $ 115 287,500 2,500 S 287,500 0 IS 115 0 Total 6,500 $ 708,000 2,500 $ 287,500 1.300 $ 123,500 Total per unit 115 Req 1A and 18 Req 2 Reg 3A and 3B Reg 3C Compute cost of goods sold for January and the ending inventory using both the FIFO and UFO methods. Cost of Goods Available for Cost of Goods Sold - Periodic Sale - FIFO FIFO Inventory Balance - Periodic FIFO FIFO: Cost Cost of #of Goods #of Cost of Cost per # of units units Cost units Available Goods Ending unit in ending per unit sold for Sale Sold inventory per unit Inventory Beg Inventory 1,300 95.00 $ 123,500 1,300 $ 95.00 $ 123,500 0$95.00 S 0 Purchases January 15 2,700 85.00 229,500 2.700 85 00 229,500 0 85.00 0 January 21 2,500 80.00 200,000 0 80.00 0 2,500 80.00 200 000 Total 6,500 $ 553,000 4,000 $ 353,000 2,500 $ 200,000 Cost of Goods Available for Cost of Goods Sold - Periodic Sale - LIFO LIFO Inventory Balance - Periodic LIFO LIFO Cost of #of Cost # of Goods Cost Cost of # of units Cost per units Goods units Ending Available in ending unit sold per unit Sold inventory Inventory for Sale $ Beg Inventory 1,300 S 123 500 0$ 95.00 1,300S 95.00 95 00 $ 123,500 Purchases January 15 2,700 85.00 229,500 0X 85.00 0 % 85.00 0 January 21 2,500 80.00 200 000 2,500 80.00 200,000 80.00 Total 6,500 $ 553,000 2,500 $ 200,000 1,300 $ 123,500 per unit
