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		507 @ $12.00
October 8	803 @ $5.33
October 9		710 @ $12.00
October 18	699 @ $5.72
October 20		810 @ $13.00
October 29	791 @ $5.91

All expenses other than cost of goods sold amount to $2,973 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 average	$fill in the blank e48b22f4306e023_1	$fill in the blank e48b22f4306e023_2	$fill in the blank e48b22f4306e023_3
FIFO	fill in the blank e48b22f4306e023_4	fill in the blank e48b22f4306e023_5	fill in the blank e48b22f4306e023_6
LIFO	fill in the blank e48b22f4306e023_7	fill in the blank e48b22f4306e023_8	fill in the blank e48b22f4306e023_9

2. What does the Total column represent?

Beginning inventoryCost of goods available for saleGross marginNet salesPurchases

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
CashIncome before taxesIncome tax expenseOperating expensesSales	$- Select -	$- Select -	$- Select -
Cost of goods available for saleCost of goods soldDepreciation expenseGross profitOperating expenses	- Select -	- Select -	- Select -
Cost of goods available for saleGross profitIncome before taxesNet incomeNet sales	$- Select -	$- Select -	$- Select -
Cost of goods soldIncome before taxesOperating expensesSales DiscountsSales	- Select -	- Select -	- Select -
CashCost of goods soldIncome before taxesNet lossSales returns and allowances	$- Select -	$- Select -	$- Select -
Cost of goods soldIncome before taxesIncome tax expenseOperating expensesSales	- Select -	- Select -	- Select -
Cost of goods available for saleCost of goods soldNet incomeNet lossTotal assets	$- Select -	$- Select -	$- Select -

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

Cannot determine from information providedLess taxesMore taxesSame amount of taxes

How much more or less? $fill in the blank 9b06ecfe4f86f95_2