Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company...
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Alta Ski Company's inventory records contained the followinginformation regarding its latest ski model. The company uses aperiodic inventory system.
Beginning inventory, January 1, 2018 1,100 units @ $75 each Purchases: January 15 2,300 units @ $90 each January 21 2,100 units @ $95 each Sales: January 5 1,050 units @ $115 each January 22 1,450 units @ $125 each January 29 900 units @ $130 each Ending inventory, January 31, 2018 2,100 units
Required:
1a. Which method, FIFO or LIFO, will result in thehighest cost of goods sold figure for January 2018?
1b. Which method will result in the highest endinginventory balance?
2. Compute cost of goods sold for January and theending inventory using both the FIFO and LIFO methods.
Alta Ski Company's inventory records contained the followinginformation regarding its latest ski model. The company uses aperiodic inventory system.
| Beginning inventory, January 1, 2018 | 1,100 | units @ $75 each |
| Purchases: | ||
| January 15 | 2,300 | units @ $90 each |
| January 21 | 2,100 | units @ $95 each |
| Sales: | ||
| January 5 | 1,050 | units @ $115 each |
| January 22 | 1,450 | units @ $125 each |
| January 29 | 900 | units @ $130 each |
| Ending inventory, January 31, 2018 | 2,100 | units |
Required:
1a. Which method, FIFO or LIFO, will result in thehighest cost of goods sold figure for January 2018?
1b. Which method will result in the highest endinginventory balance?
2. Compute cost of goods sold for January and theending inventory using both the FIFO and LIFO methods.
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