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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, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 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 $60, and the inventory purchased on January 21 had a unit cost f $55. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 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. Req 1A and 18 Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. 3a 3b. Req 2 Req 3A and 3B 1,050 units @ $70 each 2,200 units @ $85 each 2,000 units @ $90 each 1,000 units @ $110 each 1,400 units @ $120 each 850 units@ $125 each 2,000 units Req 3C Highest cost of goods sold figure Highest ending inventory balance Assume that inventory costs were declining during January. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? < Req 2 Req 3C >

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, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 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 $60, and the inventory purchased on January 21 had a unit cost f $55. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 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. Req 1A and 18 Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. 3a 3b. Req 2 Req 3A and 3B 1,050 units @ $70 each 2,200 units @ $85 each 2,000 units @ $90 each 1,000 units @ $110 each 1,400 units @ $120 each 850 units@ $125 each 2,000 units Req 3C Highest cost of goods sold figure Highest ending inventory balance Assume that inventory costs were declining during January. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? < Req 2 Req 3C >

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...
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Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Beg. Inventory Purchases: Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Sale - FIFO Cost of Goods Sold - Periodic FIFO FIFO: January 15 January 21 Total LIFO: Beg. Inventory Purchases: Total January 15 January 21 Req 2 # of units Req 3A and 3B Cost per unit 1,050 $70.00 60.00 2,200 2,000 55.00 5,250 # of units Req 3C Cost of Goods Available for Sale -LIFO Cost per unit Cost of Goods Available for Sale $ 73,500 Cost of Goods Available for Sale 1,050 $70.00 $ 73,500 2,200 60.00 2,000 55.00 5,250 132,000 110,000 $ 315,500 132,000 110,000 $ 315,500 # of units sold Cost per unit # of units sold $ 70.00 60.00 55.00 Cost of Goods Sold - Periodic LIFO $ Cost per unit 70.00 Cost of Goods Sold 60.00 55.00 Cost of Goods Sold Inventory Balance - Periodic FIFO # of units in ending inventory Cost per Ending unit Inventory $ 70.00 60.00 55.00 Inventory Balance - Periodic LIFO # of units in ending inventory $ Cost per unit 70.00 60.00 55.00 Ending Inventory
Transcribed Image Text:Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Req 1A and 1B Beg. Inventory Purchases: Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Cost of Goods Available for Sale - FIFO Cost of Goods Sold - Periodic FIFO FIFO: January 15 January 21 Total LIFO: Beg. Inventory Purchases: Total January 15 January 21 Req 2 # of units Req 3A and 3B Cost per unit 1,050 $70.00 60.00 2,200 2,000 55.00 5,250 # of units Req 3C Cost of Goods Available for Sale -LIFO Cost per unit Cost of Goods Available for Sale $ 73,500 Cost of Goods Available for Sale 1,050 $70.00 $ 73,500 2,200 60.00 2,000 55.00 5,250 132,000 110,000 $ 315,500 132,000 110,000 $ 315,500 # of units sold Cost per unit # of units sold $ 70.00 60.00 55.00 Cost of Goods Sold - Periodic LIFO $ Cost per unit 70.00 Cost of Goods Sold 60.00 55.00 Cost of Goods Sold Inventory Balance - Periodic FIFO # of units in ending inventory Cost per Ending unit Inventory $ 70.00 60.00 55.00 Inventory Balance - Periodic LIFO # of units in ending inventory $ Cost per unit 70.00 60.00 55.00 Ending Inventory
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, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 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 $60, and the inventory purchased on January 21 had a unit cost of $55. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 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. Req 1A and 1B Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. 3a 3b. Req 2 Req 3A and 3B 1,050 units @ $70 each 2,200 units @ $85 each 2,000 units @ $90 each Req 3C Highest cost of goods sold figure Highest ending inventory balance 1,000 units @ $110 each 1,400 units @ $120 each 850 units @ $125 each 2,000 units Assume that inventory costs were declining during January. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? < Req 2 Req 3C >
Transcribed Image Text: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, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 Required: 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 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 $60, and the inventory purchased on January 21 had a unit cost of $55. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021? 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. Req 1A and 1B Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. 3a 3b. Req 2 Req 3A and 3B 1,050 units @ $70 each 2,200 units @ $85 each 2,000 units @ $90 each Req 3C Highest cost of goods sold figure Highest ending inventory balance 1,000 units @ $110 each 1,400 units @ $120 each 850 units @ $125 each 2,000 units Assume that inventory costs were declining during January. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021 and highest ending inventory balance? < Req 2 Req 3C >
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