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

Units Unit Cost Beginning inventory 200 $10 Purchases:

March 5 300 11 June 12 400 12 August 23 250 13 October 2 150 15 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.
3. Assume that Carter prepares its fi nancieal statments in accordance with IFRS. Which costing method should it use to pay the least amount of taxes? Explain your answer.AppendixLO1