Comparison of Inventory Costing Methods Periodic System Bitten Company's inventory records show 601 units on hand on October 1 with a unit cost of 55 each. The following transactions occurred during the month of October Date Unit Purchases Unit Sales October 906 $11.00 October 7000 $5:47 October 709 511.00 October 18 700 55.71 October 20 796 512.00 October 29 797 55.88 All expenses other than cost of goods sold amount to $2,992 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes. Required: 1. Prepare a chart comparing cost of goods sold and ending inventory using the periodic system and the following costing methods. In your calculations round weighted average unit cost to three decimal places and round all other calculations and your final answers to the nearest dollar Bitten Company Comparison for Cost of Goods Sold and Ending Inventory Using the Periodic System For Weighted Average, FIFO and LIFO Cost Methods Inventory System Cost of Goods Sold Ending Inventory Total Weighted averige 13.013.03 X 4.990.13 X 18.00316 X FILO 11.32 X LIFO 2. What does the total column represent? Cost of noods available for sale Feedback Check My Work Was your total column the same for all three methods? 3. Prepare income statements for each of the three methods. When required, round your answers to the nearest dollar. Bitten Company Income Statement For the Month of October Weighted Average FIFO LIFO Sales 22,917 Cost of goods available for sale X Grass Profit A QOJIJO X X 13,004.66 X Income before taxes Cast of goods sold Operating expenses Net loss X Ooi Check My Work 2 more Check My Work uses remaining P Review the parts 4. Will the company pay more or less tax if it uses FIFO rather than LIFO? More taxes How much more or less? Feedback