Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system.

Beginning inventory, January 1, 2024 1,300 units @ $95 each Purchases: January 15 2,700 units @ $110 each January 21 2,500 units @ $115 each Sales: January 5 1,250 units @ $135 each January 22 1,650 units @ $145 each January 29 1,100 units @ $150 each Ending inventory, January 31, 2024 2,500 units

Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2024?

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 $85, and the inventory purchased on January 21 had a 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 2024?

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.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{FIFO} & \multicolumn{3}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold - Periodic FIFO } & \multicolumn{4}{|c|}{ Ending Inventory - Periodic FIFO } \\ \hline & \multirow{2}{*}{\begin{tabular}{r} \begin{tabular}{c} Number \\ of units \end{tabular} \\ 1,300 \end{tabular}} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \begin{tabular}{c} Cost of Goods \\ Available for \\ Sale \end{tabular} & \multirow[t]{2}{*}{\begin{tabular}{c} Number \\ of units \\ sold \end{tabular}} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \multirow[t]{2}{*}{\begin{tabular}{c} Cost of \\ Goods Sold \end{tabular}} & \multirow{2}{*}{\begin{tabular}{|c|} \begin{tabular}{c} Number of \\ units in \\ ending \\ inventory \end{tabular} \\ \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Cost per \\ unit \end{tabular}} & \multirow[t]{2}{*}{\begin{tabular}{c} Ending \\ Inventory \end{tabular}} \\ \hline Beginning Inventory & & 95 & 123,500 & & 95 & & & $ & 95 & \\ \hline \multicolumn{11}{|l|}{ Purchases: } \\ \hline January 15 & 2,700 & $110 & 297,000 & & 110 & & & $ & 110 & \\ \hline January 21 & 2,500 & $115 & 287,500 & & 115 & & & $ & 115 & \\ \hline Total & 6,500 & & 708,000 & & & & & & & \\ \hline & \multicolumn{3}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold - Periodic LIFO } & \multicolumn{4}{|c|}{ Ending Inventory - Periodic LIFO } \\ \hlineLIFO & \begin{tabular}{l} Number \\ of units \end{tabular} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \begin{tabular}{c} Cost of Goods \\ Available for \\ Sale \end{tabular} & \begin{tabular}{l} Number \\ of units \\ sold \end{tabular} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \begin{tabular}{c} Cost of \\ Goods Sold \end{tabular} & \begin{tabular}{c} Number of \\ units in \\ ending \\ inventory \end{tabular} & & & \begin{tabular}{c} Ending \\ Inventory \end{tabular} \\ \hline Beginning Inventory & 1,300 & 95 & 123,500 & & 95 & & & $ & 95 & \\ \hline \multicolumn{11}{|l|}{ Purchases: } \\ \hline January 15 & 2,700 & $110 & 297,000 & & 110 & & & $ & 110 & \\ \hline January 21 & 2,500 & $115 & 287,500 & & 115 & & & $ & 115 & \\ \hline Total & 6,500 & & 708,000 & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ FIFO: } & \multicolumn{4}{|c|}{\begin{tabular}{c} Cost of Goods Available for Sale \\ - FIFO \end{tabular}} & \multicolumn{3}{|c|}{\begin{tabular}{c} Cost of Goods Sold - Periodic \\ FIFO \end{tabular}} & \multicolumn{3}{|c|}{ Inventory Balance - Periodic FIFO } \\ \hline & \begin{tabular}{l} Number \\ of units \end{tabular} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & Ava & \begin{tabular}{l} Oost of \\ Foods \\ ilable for \\ Sale \end{tabular} & \begin{tabular}{c} Number \\ of units \\ sold \end{tabular} & \begin{tabular}{l} Cost per \\ unit \end{tabular} & \begin{tabular}{c} Cost of \\ Goods Sold \end{tabular} & \begin{tabular}{c} Number of \\ units in \\ ending \\ inventory \end{tabular} & \begin{tabular}{l} Cost per \\ unit \end{tabular} & \begin{tabular}{c} Ending \\ Inventory \end{tabular} \\ \hline Beginning Inventory & 1,300 & $95.00 & $ & 123,500 & & 95.00 & & & 95.00 & \\ \hline \multicolumn{11}{|l|}{ Purchases: } \\ \hline January 15 & 2,700 & 85.00 & & 229,500 & & 85.00 & & & 85.00 & \\ \hline January 21 & 2,500 & 80.00 & & 200,000 & & 80.00 & & & 80.00 & \\ \hline Total & 6,500 & & $ & 553,000 & & & & & & \\ \hline \multirow[b]{2}{*}{ LIFO: } & \multicolumn{4}{|c|}{\begin{tabular}{c} Cost of Goods Available for Sale \\ - LIFO \end{tabular}} & \multicolumn{3}{|c|}{\begin{tabular}{c} Cost of Goods Sold - Periodic \\ LIFO \end{tabular}} & \multicolumn{3}{|c|}{ Inventory Balance - Periodic LIFO } \\ \hline & \begin{tabular}{l} Number \\ of units \end{tabular} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & Ava & \begin{tabular}{l} Oost of \\ Coods \\ ilable for \\ Sale \end{tabular} & \begin{tabular}{c} Number \\ of units \\ sold \end{tabular} & \begin{tabular}{l} Cost per \\ unit \end{tabular} & \begin{tabular}{c} Cost of \\ Goods Sold \end{tabular} & \begin{tabular}{c} Number of \\ units in \\ ending \\ inventory \end{tabular} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \begin{tabular}{c} Ending \\ Inventory \end{tabular} \\ \hline Beginning Inventory & 1,300 & $95.00 & $ & 123,500 & & 95.00 & & & 95.00 & \\ \hline \multicolumn{11}{|l|}{ Purchases: } \\ \hline January 15 & 2,700 & 85.00 & & 229,500 & & 85.00 & & & 85.00 & \\ \hline January 21 & 2,500 & 80.00 & & 200,000 & & 80.00 & & & 80.00 & \\ \hline Total & 6,500 & & $ & 553,000 & & & & & & \\ \hline \end{tabular}