Comparison of Inventory Costing Methods-Periodic System Bitten Company's inventory records show 592 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 4 494 @ $10.00 October 8 805 @ $5.42 October 9 690 @ $10.00 October 18 704 @ $5.73 October 20 797. @ $11.00 October 29 802 @ $5.98 All expenses other than cost of goods sold amount to $3,031 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 Total Ending Inventory X X Weighted average Lu Inventory System Cost of Goods Sold Total Ending Inventory $ X Weighted average X $ FIFO X X LIFO XC x x Feedback Check My Work Review the differences in inventory costing methods using the periodic system. The first step in any of the methods should be to calculate the cost of the inventory on hand and purchased. How would you determine the number of units of inventory still on hand at the end of the month? 2. What does the Total column represent? Cost of goods available for sale Feedback W 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 LIFO FIFO X X $ Sales y X X X Cost of goods sold X X $ X Income tax expense X X Net income X $ Feedback Check My Work Be sure to use the relevant information from (1) in your Income Statement. Review the parts of a multiple step income statement. 4. Will the company pay more or less tax if it uses FIFO rather than LIFO? More taxes How much more or less? s