Exercise $8-16($Static$)$ Comparison of FIFO and LIFO; periodic system $[$LO$8-1,8-4]$

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 $1,2024$

Purchases:

January $15$

January $21$

Sales:

January $5$

January: $22$

January $29$

Ending inventory, January $31,2024$

$600$ units @ $$80$ each

$1,000$ units @ $$95$ each

$800$ units @ $$100$ each

$400$ units @ $$120$ each

$800$ units @ $$130$ each

$400$ units @ $$135$ each

Required:

$1$a$.$ Which method, FIFO or LIFO, will result in the, highest cost of goods sold figure for January $2024?$

$1$b$.$ Which method will result in the highest ending inventory balance?

Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

$3$a$.$ Assume that inventory costs were declining during January. The inventory purchased on January $15$ had a unit cost of $$70,$ and the

inventory purchased on January $21$ had a unit cost of $$65.$ All other information is the same. Which method, FIFO or LIFO, will result in

the highest cost of goods sold figure for January $2024?$

$3$b$.$ Which method will result in the highest ending inventory balance?

$3$c$.$ Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

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