80.2K

Verified Solution

Link Copied!

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, 2821 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 956 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. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Reg 2 Req 3A and 3B Req 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. Req 1A and 1B Req 2 Req 3A and 3B Req 3C 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 of Goods # of units Cost per # of units Cost per Cost of Available for | unit | Sale sold Goods Sold unit $ 0 Ending Inventory - Periodic FIFO # of units Cost per Ending in ending inventory unit Inventory $ 0S Beginning Inventory Purchases: January 15 January 21 Total $ 00S 0 $ 0 0 $ 0 S a Cost of Goods Available for Sale mor Cost of Goods LIFO Cost of Goods Sold - Periodic LIFO # of units , Cost per Cost of sold unit Goods Sold Ending Inventory - Periodic LIFO # of units Cost per Ending in ending inventory unit Inventory unit Sale $ 0 $ $ 0 Beginning Inventory Purchases: January 15 January 21 0 0 0 $ Total $ $ C

Answer & Explanation Solved by verified expert

See Answer