Inventory Costing Methods—Periodic System The following information is available concerning the inventory of Carter Inc.:

During the year, Carter sold 1,000 units. It uses a periodic inventory system.
Required 1. Calculate ending inventory and cost of goods sold for each of the following three methods:

a. Weighted average

b. FIFO

c. LIFO 2. Assume an estimated tax rate of 30%. How much more or less (indicate which) will Carter pay in taxes by using FIFO instead of LIFO? Explain your answer.

Transcribed Image Text:

Units Unit Cost Beginning inventory 200 $10 Purchases: March 5 300 11 June 12 400 12 August 23 250 13 October 2 150 15