Question

Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system 650 units @ $75 each 1,480 units @ $99 each 1,200 units @ $95 each Beginning inventory, January 1, 2018 Purchases January 15 January 21 Sales: January 5 January 22 January 29 Ending Inventory, January 31, 2018 600 units @ $115 each 1,000 units $125 each 450 units @ $130 each 1.200 units Required: 10. 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. Reg 1A and 18 Reg 2 Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Sale Cost of Goods Sold Periodic FIFO Ending Inventory. Periode FIFO FIED Cost of Goods units Cost per cost of of unitsCost per of units Inventory Cost per com unit of units Sold Available for unit Goods Sold in ending inventory unit Sale

Answer 1

FIFO Ending Inventory Amount No. of Units Unit Price Cost of Goods available for sale Cost of Goods sold No. of Units Unit Price Amount No. of Units Unit Price Amount 75 48,750 75 $3,750 $ 3,750 75 $3,750 90 $126,000 $129,750 75 $ 3,750 90 $126,000 95 $114,000 $243,750 75 $ 90 40,500 95 $114,000 $154,500 650 S Beginning Inventory Sales on 5th Jan 75 45,000 600 $ 600 $ 50 $ 75 45,000 $ $ $ $ 50 90 $126,000 1400 S Purchases on 15th Jan 50 S 1400 S 90 $126,000 $ 95 $114,000 $ $ 1,450 1,400 1,200 $ 50 $ Purchases on 21st Jan 1,400 $ 1,200 $ 1,200 $ 95 $114,000 $ $ $ 75 $ 3,750 2,650 50 $ $ 450 $ Sales in 22nd Jan 950 $ $85,500 90 1,200 $ $ 89,250 $ 90 $40,500 $ $ $ 1,000 1,650 450 $ $ 95 $114,000 $114,000 Ending Inventory Sales on 29th Jan 90 0 1,200 $ $ 40,500 $ $ $ 450 1,200 $174,750 Total Cost of Goods Sold 2,050

LIFO Ending Inventory Cost of Goods available for sale Cost of Goods sold No. of Units Unit Price Amount No. of Units Unit Price Amount No. of Units Unit Price Amount 75 48,750 75 $ 3,750 3,750 75 $ 3,750 90 $126,000 $129,750 75 $ 3,750 90 $126,000 95 $114,000 Beginning Inventory 650 $ 600 $ 600 $ 75 45,000 50 $ Sales on 5th Jan 75 45,000 $ $ $ 50 90 $126,000 1400 $ 50 $ Purchases on 15th Jan 1400 $ 1,400 $ 1,200 $ 90 $126,000 $ 95 $114,000 $ $ 1,450 50 $ Purchases on 21st Jan 1,400 $ 1,200 $ $ 95 $114,000 $ 1,200 $ $243,750 75 $ 3,750 90 $126,000 95 19,000 2,650 Sales in 22nd Jan 95 95,000 50 $ 1,000 $ 1,400 $ 200 $ 95,000 $ 95 19,000 90 $22,500 $ $ $ $148,750 75 $3,750 90 $103,500 $107,250 Ending Inventory 1,000 1,650 Sales on 29th Jan 200 $ 50 $ 250 $ 1,150 $ $ 1,200 450 41,500 $181,500 Total Cost of Goods Sold 2,050