Sy w Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system 1,200 units 305 ch 2,500 k 1 | vnch 2, 3 units $105 each Deginning Inventory, January 1, 2023 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory. Danuary 31, 2021 1,150 units 5125 each 1,550 units $135 each 1,000 units 1140 each 2,300 units 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 30. Assume that inventory costs were declining during January The inventory purchased on January 15 had a unit cost of $75 and the inventory purchased on January 21 had a unit cost of $70 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 Ending Inventory Periodic FIEO FIFO Cost of Goods Sold Periodic FIFO Cost of units Goods unit sold Sold Cost of Goods Available for Sale Cost Cost of # of Goods units per unit Available for Sale 1200 $ 85 $ 102.000 # of Cost per Cost # of units in ending inventory per unit Ending Inventory 1,200 s 85 $ 102,000 0 S 85 IS 0 Beginning Inventory Purchases January 15 January 21 Total 2,500 0 2,500 2,300 6,000 $ 100 5 105 250,000 241 500 $ 593,500 $ $ 100 105 250,000 0 $ 352.000 0 0$ 2,300 $ 2,300 100 105 241,500 $ 241,500 3.700 Ending Inventory - Periodic LIFO LIFO Cost of Goods Available for Sale # of Cost Cost of Goods per units unit Available for Sale 1,200 $ 85 IS 102,000 Cost of Goods Sold Periodic LIFO # of Cost of units Goods sold unit Sold Cost per Hof units in ending Inventory Cost per unit Ending Inventory 0 S 85 S 0 1.200 $ 85 $ 102,000 Beginning Inventory Purchases January 15 January 21 Total 100 2.500 2,300 6,000 $ 100 $ 105 250 000 241 500 593 500 1 300 2.300 3.600 IS 130.000 241 500 $ 371500 100 105 105 0 $ 0$ 1,200 0 $ 102,000 FIFO : #of Cost Cost #of units Cost per unit Cost of Goods Available for Sale units sold Cost of Goods Sold # of units in ending inventory Ending Inventory per unit per unit $ 1.200 $ 102,000 ls 1,200 $ 85.00 $ 102,000 0$ 85.00 0 85.00 Beg Inventory Purchases January 15 January 21 Total 0 2,500 2.300 6,000 75.00 70.00 187,500 161,000 $ 450,500 2,500 2,300 6,000 75.00 70.00 187,500 161,000 $ 450,500 OO > 75.00 70.00 0 $ 0 Cost of Goods Sold Periodic LIFO Inventory Balance - Periodic LIFO LIFO Cost Cost Cost of Goods Available for Sale LIFO Cost of #of Cost Goods units per Available unit for Sale S 1.200 $ 102,000 85.00 # of units sold Cost of Goods Sold of units in ending inventory Ending Inventory per unit per unit 0$ 85.00 1.200 $ 85.00 $ 102,000 Beg Inventory Purchases January 15 January 21 Total 2.500 0X 0 75.00 70.00 187.500 161.000 $ 450,500 2.300 X 2.300 4.600 75.00 70.00 2.300 6.000 172,500 161,000 $ 333,500 75.00 70.00 1.200 $ 102,000
