Inventory Costing Methods-Periodic System The following information is available concerning the inventory of Carter Inc.: Beginning inventory Purchases: March 5 June 12 August 23 October 2 Units Unit Cost $10 205 b. FIFO 301 395 246 154 During the year, Carter sold 990 units. It uses a periodic inventory system. Required: 1. Calculate ending inventory and cost of goods sold for each of the following three methods: In your calculations round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar. Cost Flow Assumption Cost of Goods Sold Ending Inventory a. Weighted average $ 11 12 13 15 $ Difference in taxes under FIFO vs. LIFO $ 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? $ $ Does this amount represent more or less taxes paid using FIFO? 3. Assume that Carter prepares its financial statements in accordance with IFRS. Which costing method should it use to pay the least amount of taxes?