Intermediate Accounting: E8-13 Alta Ski Company's inventory records

Intermediate Accounting 
E 8-13 
Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. 
Units Unit Cost Cost 
Beginning inventory, January 1, 2006 600 80 48,000 
Purchases: 
January 15 1000 95 95,000 
January 21 800 100 80,000 
2,400 223,000 Cost of goods available for sale 
Sales: 
January 5 400 120 
January 22 800 130 
January 29 400 135 
Ending inventory, January 31, 2006 800 

Required: 
1. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2006? Why? Which method will result in the highest ending inventory balance? Why? 
2. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.
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