Company's inventory records show 597 units on hand on October 1 with a unit cost of $5 each. The following transactions occurred during the month of October:

Date	Unit Purchases	Unit Sales
October 4		504 @ $11
October 8	803 @ $5.35
October 9		700 @ $11
October 18	702 @ $5.73
October 20		799 @ $12
October 29	796 @ $5.96

All expenses other than cost of goods sold amount to $2986 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes.

Bitten Company
Comparison for Cost of Goods Sold and Ending Inventory Using the Perpetual System
For Moving Average, FIFO and LIFO Cost Methods
	Cost of Goods Sold	Ending Inventory	Total
Moving Average
FIFO
LIFO

Prepare income statements.

Bitten Company
Income Statement
For the Month of October
	Moving Average	FIFO	LIFO
Sales
Cost of goods sold
Gross profit
Operating expenses
Income before taxes
Income tax expense
Net income

The company will pay more tax if it uses FIFO rather than LIFO. How much more?