Question
Excercise 5-25 Inventory cost methods - periodic system The following information is avaible concerning the inventory of Carter inc, Begining invenotory Unit Unit cost 200
Excercise 5-25 Inventory cost methods - periodic system
The following information is avaible concerning the inventory of Carter inc,
Begining invenotory Unit Unit cost
200 10
11
12
13
15
Purchases: March 5,$300. June 12,$400, August 23, $250 October 2, $150
During the year Carter sold 1,000 units, it uses a periodic inventory system.
1. Caluclate ending inventory and cost of goods sold for each of the following three methods:a wieughed average b. FIFO c. LIFO
2. Assume an estimated tax rate of 30% how much more or less will carter pay in taxes by using FIFO instead of LIFO? Explain your answer
3. Assume that carter prepares its financial statement ub accordance with IFRS. Which costing method should it sue to pay the least amount of taxes? Explain your answer.
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