Response to the following problem:
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, 2013 500 units@$60 each Purchases:
January 15 1,100 units@$75 each January 21 900 units @ $ 80 each Sales:
January 5 450 units @$100 each January 22 850 units@$110 each
January 29 300 units @$115 each Ending inventory,
January 31, 2013 900 units
Required:
1 Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2013?
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.