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.

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?

$2.$ 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 $\backslash$$$70,$ and the inventory purchased on January $21$ had a unit cost of $\backslash (\backslash$$ $65\backslash ).$ 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.

Complete this question by entering your answers in the tabs below.

Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January $2024$ and highest ending inventory balance?

$1$a$.$ Highest cost of goods sold figure

$1$b$.$ Highest ending inventory balance Req $1$ A and $1$ B

Req $2$

Req $\backslash (3$ A $\backslash )$ and $\backslash (3$ B $\backslash )$

Req $3$C

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

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multirow$[$b$]\{2\}\{*\}\{$FIFO:$\}$ & $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cost of Goods Available for Sale $-$ FIFO$\}$ & $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cost of Goods Sold $-$ Periodic FIFO$\}$ & $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Inventory Balance $-$ Periodic FIFO$\}\backslash \backslash$

$\backslash$hline & Number of units & Cost per unit & Cost of Goods Available for Sale & Number of units sold & Cost per unit & Cost of Goods Sold & Number of units in ending inventory & Cost per unit & & $\backslash \backslash$

$\backslash$hline Beginning Inventory & $600$ & $\backslash$$ $80\mathrm{.}00$ & $\backslash$$ $48,000$ & & $\backslash$$ $80\mathrm{.}00$ & & & $\backslash$$ $80\mathrm{.}00$ & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{11\}\{|$l$|\}\{$Purchases:$\}\backslash \backslash$

$\backslash$hline January $15$ & $1,000$ & $70\mathrm{.}00$ & $70,000$ & & $70\mathrm{.}00$ & & & $70\mathrm{.}00$ & & $0\backslash \backslash$

$\backslash$hline January $21$ & $800$ & $65\mathrm{.}00$ & $52,000$ & & $65\mathrm{.}00$ & $0$ & & $65\mathrm{.}00$ & & $\backslash \backslash$

$\backslash$hline Total & $2,400$ & & $\backslash$$ $170,000$ & $0$ & & $\backslash$$ $0$ & $0$ & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$b$]\{2\}\{*\}\{$LIFO:$\}$ & $\backslash$multicolumn$\{3\}\{|$l$|\}\{\backslash$begin$\{$tabular$\}\{$l$\}$

Cost of Goods Available for Sale $\backslash \backslash$

$-$ LIFO

$\backslash$end$\{$tabular$\}\}$ & $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cost of Goods Sold $-$ Periodic LIFO$\}$ & $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Inventory Balance $-$ Periodic LIFO$\}\backslash \backslash$

$\backslash$hline & Number of units & Cost per unit & Cost of Goods Available for Sale & Number of units sold & Cost per unit & Cost of Goods Sold & Number of units in ending inventory & Cost per unit & & $\backslash \backslash$

$\backslash$hline Beginning Inventory & $600$ & $\backslash$$ $80\mathrm{.}00$ & $\backslash$$ $48,000$ & & $\backslash$$ $80\mathrm{.}00$ & & & $\backslash$$ $80\mathrm{.}00$ & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{11\}\{|$l$|\}\{$Purchases:$\}\backslash \backslash$

$\backslash$hline January $15$ & $1,000$ & $70\mathrm{.}00$ & $70,000$ & & $70\mathrm{.}00$ & & & $70\mathrm{.}00$ & & $0\backslash \backslash$

$\backslash$hline January $21$ & $800$ & $65\mathrm{.}00$ & $52,000$ & & $65\mathrm{.}00$ & $0$ & & $65\mathrm{.}00$ & & $\backslash \backslash$

$\backslash$hline Total & $2,400$ & & $\backslash$$ $170,000$ & $0$ & & $\backslash$$ $0$ & $0$ & & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Complete this question by entering your answers in the tabs below.

Req $1$ A and $1$ B

Req $2$

Req $3$A and $3$B

Req $3$C

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

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multirow$[$b$]\{2\}\{*\}\{$FIFO$\}$ & $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Cost of Goods Available for Sale$\}$ & $\backslash$multicolumn$\{5\}\{|$l$|\}\{$Cost of Goods Sold $-$ Periodic FIFO$\}$ & $\backslash$multicolumn$\{5\}\{|$l$|\}\{$Ending Inventory $-$ Periodic FIFO$\}\backslash \backslash$

$\backslash$hline & Number of units & Cost per unit & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost of Goods Available for Sale$\}$ & Number of units sold & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost per unit$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost of Goods Sold$\}$ & Number of units in ending inventory & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost per unit$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Ending Inventory$\}\backslash \backslash$

$\backslash$hline Beginning Inventory & $600$ & $\backslash$$ $80$ & $\backslash$$ & $48,000$ & $600$ & $\backslash$$ & $80$ & $\backslash$$ & $48,000$ & $0$ & $\backslash$$ & $80$ & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline Purchases: & $\backslash$multicolumn$\{14\}\{|$l$|\}\{\}\backslash \backslash$

$\backslash$hline January $15$ & $1,000$ & $\backslash$$ $95$ & & $95,000$ & $1,000$ & $\backslash$$ & $95$ & & $95,000$ & $0$ & $\backslash$$ & $95$ & & $0\backslash \backslash$

$\backslash$hline January $21$ & $800$ & $\backslash$$ $100$ & & $80,000$ & $800$ & $\backslash$$ & $100$ & & $80,000$ & $800$ & $\backslash$$ & $100$ & & $80,000\backslash \backslash$

$\backslash$hline Total & $2,400$ & & $\backslash$$ & $223,000$ & $2,400$ & & & $\backslash$$ & $223,000$ & $800$ & & & $\backslash$$ & $80,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multirow$[$b$]\{2\}\{*\}\{$LIFO$\}$ & $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Cost of Goods Available for Sale$\}$ & $\backslash$multicolumn$\{5\}\{|$l$|\}\{$Cost of Goods Sold $-$ Periodic LIFO$\}$ & $\backslash$multicolumn$\{5\}\{|$l$|\}\{$Ending Inventory $-$ Periodic LIFO$\}\backslash \backslash$

$\backslash$hline & Number of units & Cost per unit & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost of Goods Available for Sale$\}$ & Number of units sold & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost per unit$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost of Goods Sold$\}$ & Number of units in ending inventory & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cost per unit$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Ending Inventory$\}\backslash \backslash$

$\backslash$hline Beginning Inventory & $600$ & $\backslash$$ $80$ & $\backslash$$ & $48,000$ & $0$ & $\backslash$$ & $80$ & $\backslash$$ & $0$ & $600$ & $\backslash$$ & $80$ & $\backslash$$ & $48,000\backslash \backslash$

$\backslash$hline Purchases: & $\backslash$multicolumn$\{14\}\{|$l$|\}\{\}\backslash \backslash$

$\backslash$hline January $15$ & $1,000$ & $\backslash$$ $95$ & & $95,000$ & $0$ & $\backslash$$ & $95$ & & & $0$ & $\backslash$$ & $95$ & & $\backslash \backslash$

$\backslash$hline January $21$ & $800$ & $\backslash$$ $100$ & & $80,000$ & $800$ & $\backslash$$ & $100$ & & $80,000$ & $0$ & $\backslash$$ & $100$ & & $0\backslash \backslash$

$\backslash$hline Total & $2,400$ & & $\backslash$$ & $223,000$ & $800$ & & & $\backslash$$ & $80,000$ & $600$ & & & $\backslash$$ & $48,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Complete this question by entering your answers in the tabs below.

Req $1$ A and $1$ B

Req

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