Alta Ski Company\'s inventory records contained the following information regard

Question

Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. Beginning inv entory, January 1, 2018 950 units $60 each Purchases January 15 January 21 2,000 units @ 75 each 1,800 units $80 each Sales January 5 January 22 January 29 900 units @ 100 each 1,300 units $110 each 750 units$115 each Endi ng inventory, January 31, 2018 1,800 units Required 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2018? 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. Complete this question by entering your answers in the tabs below Req 1A and 1B Req 2 Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2018 and highest ending inventory balance 1a. Highest cost of goods sold figure 1b. Highest ending inventory balance

Explanation / Answer

1.a . LIFO

1.b. FIFO

2.a. FIFO

2.b. LIFO

Beginning inventory 950 60 57000 950 60 57000 0 60 0 Purchases January 15 2000 75 150000 2000 75 150000 0 75 0 January 21 1800 80 144000 1800 80 144000 Total 4750 351000 2950 207000 1800 144000

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