Comparison of Inventory Costing MethodsPeriodic System

Bitten Companys inventory records show 596 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		509 @ $11.00
October 8	790 @ $5.47
October 9		702 @ $11.00
October 18	691 @ $5.83
October 20		791 @ $12.00
October 29	793 @ $5.96

All expenses other than cost of goods sold amount to $3,002 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.

2. Prepare income statements for each of the three methods. When required, round your answers to the nearest dollar.