Question

Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 1,300 units @ $95 each 2,700 units @ $110 each 2,500 units @ $115 each Beginning inventory, January 1, 2018 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2018 1,250 units @ $135 each 1,650 units @ $145 each 1,100 units @ $150 each 2,500 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 Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO FIFO Cost of Goods Available for Sale Cost of Cost # of Goods units per Available unit for Sale 1,300 $ 95 % 123,500 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory 0 Cost per unit Ending Inventory 1,300 $ 95 $ 123,500 $ 95 $ 0 Beginning Inventory Purchases: January 15 January 21 Total 2,700 2,500 6,500 $ 110 $ 115 2 97,000 287,500 708,000 0 $ 1100 2,500 $ 115 287,500 2,500 $ 287,500 $ 2,700 $ 110 2 97,000 2,500 $ 115 287,500 4,000 $ 708,000 Cost of Goods Sold - Periodic LIFO # of Cost of units Cost Goods sold per unit Sold 0 $ 95 $ 0 Ending Inventory - Periodic LIFO Cost of Goods Available for Sale Cost of Cost # of Goods units per Available unit for Sale 1,300 $ 95 % 123,500 LIFO # of units in ending inventory 1,300 Cost per unit Ending Inventory $ 95 $ 123,500 Beginning Inventory Purchases: January 15 January 21 Total 2,700 2,500 6,500 $ 110 $ 115 297,000 287,500 708,000 2,500 2,500 $ 1100 $ 115287,500 $ 287,500 0 1,300 $ 1100 $ 115 $ 123,500 $ Req 1A and 1B Req2 > Reclox incitalos no C onse was expected in a cell or a lormula-base calculalian is incrccl; no points celule.

Answer 1

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1 Answer 2 Requirement 2) 31) Cos of goods sold Cost of goods available for sale Periodic FIFO Ending Inventory - Periodic FIFO 4 Cost of goods #of units in Cost of goods #of units Ending FIFO Cost per unit available for #of units ending Cost per unit Cost per unit sold sold Inventory sale inventory 5 6 Beginning Inventory 7 Purchases 1300 1300 95 123500 95 123500 95 0 January 15 January 21 10 Total 2700 297000 8 110 297000 2700 110 0 110 9 2500 115 287500 0 115 0 2500 115 287500 708000 6500 4000 420500 2500 287500 11 12 2) Ending Inventory 13 Cost of goods available for sale Cos of goods sold - Periodic LIFO Periodic LIFO Cost of goods #of units in Cost of goods LIFO # of units Ending # of units ending Cost per unit available for Cost per unit Cost per unit sold sold Inventory inventory sale 14 15 Beginning Inventory 95 1300 123500 95 0 1300 95 123500 16 Purchases January 15 18 January 21 19 Total 17 2700 110 297000 1500 110 165000 1200 110 132000 2500 287500 287500 115 2500 115 0 115 0 6500 708000 4000 452500 2500 255500 20