Comparison of Inventory Costing MethodsPeriodic System

Bitten Companys inventory records show 605 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		490 @ $11.00
October 8	794 @ $5.49
October 9		697 @ $11.00
October 18	703 @ $5.83
October 20		803 @ $12.00
October 29	807 @ $5.96

All expenses other than cost of goods sold amount to $2,994 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes.

4. Will the company pay more of less tax if uses FIFO rather than LIFO? How much more or less?

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 average non FIFO LIFO 2. What does the total column represent? 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