**Alta Ski Company Inventory Analysis: January 2021****Inventory Records Summary:**- **Beginning Inventory (January 1, 2021):** - 1,050 units at $70 each- **Purchases:** - January 15: 2,200 units at $85 each - January 21: 2,000 units at $90 each- **Sales:** - January 5: 1,000 units at $110 each - January 22: 1,400 units at $120 each - January 29: 850 units at $125 each- **Ending Inventory (January 31, 2021):** - 2,000 units**Requirements for Analysis:**1. **Cost Analysis Using FIFO and LIFO:** - Determine which method (FIFO or LIFO) results in the highest cost of goods sold (COGS) for January 2021. - Determine which method results in the highest ending inventory balance.2. **Computation of Costs:** - Compute COGS for January and the ending inventory using both FIFO and LIFO methods.3. **Scenario Analysis (Declining Costs):** - Assume inventory costs were declining during January. The unit cost for inventory on January 15 is $60, and on January 21 is $55. - Determine which method results in the highest COGS for January 2021. - Determine which method results in the highest ending inventory balance. - Compute COGS for January and the ending inventory using both FIFO and LIFO methods.**Interactive Calculation:**- Utilize the interactive features to calculate and explore different outcomes based on FIFO and LIFO methods to understand their effects on the cost of goods sold and ending inventory balances.**Conclusion:**This analysis will help in understanding the implications of using FIFO (First-In, First-Out) versus LIFO (Last-In, First-Out) inventory methods under different cost conditions and how they affect financial reporting and decision-making. This document provides a detailed analysis of computing the cost of goods sold for January and the ending inventory using both the FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) methods. ### FIFO Method:1. **Cost of Goods Available for Sale:** - **Beginning Inventory:** - Number of units: 1,050 - Cost per unit: $70 - Total cost: $73,500 - **Purchases:** - January 15: - Number of units: 2,200 - Cost per unit: $85 - Total cost: $187,000 - January 21: - Number of units: 2,000 - Cost per unit: $90 - Total cost: $180,000 - **Total:** - Number of units: 5,250 - Total cost: $440,5002. **Cost of Goods Sold - Periodic FIFO:** - Number of units sold, cost per unit, and total cost left blank for completion.3. **Ending Inventory - Periodic FIFO:** - Number of units in ending inventory, cost per unit, and total ending inventory left blank for completion.### LIFO Method:1. **Cost of Goods Available for Sale:** - **Beginning Inventory:** - Number of units: 1,050 - Cost per unit: $70 - Total cost: $73,500 - **Purchases:** - January 15: - Number of units: 2,200 - Cost per unit: $85 - Total cost: $187,000 - January 21: - Number of units: 2,000 - Cost per unit: $90 - Total cost: $180,000 - **Total:** - Number of units: 5,250 - Total cost: $440,5002. **Cost of Goods Sold - Periodic LIFO:** - Number of units sold, cost per unit, and total cost left blank for completion.3. **Ending Inventory - Periodic LIFO:** - Number of units in ending inventory, cost per unit, and total ending inventory left blank for completion.This table is structured to help understand the

Name: **Alta Ski Company Inventory Analysis: January 2021****Inventory Reco
Uploaded: 2024-03-20T06:32:37.000Z
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Description: **Alta Ski Company Inventory Analysis: January 2021****Inventory Records Summary:**- **Beginning Inventory (January 1, 2021):** - 1,050 units at $70 each- **Purchases:** - January 15: 2,200 units at $85 each - January 21: 2,000 units at $90 each-