Inventory Costing MethodsPeriodic System

The following information is available concerning the inventory of Carter Inc.:

UnitsUnit CostBeginning inventory190$10Purchases:March 5 298 11June 12 405 12August 23 245. 13October 2. 150. 15

During the year, Carter sold 994 units. It uses a periodic inventory system.

Required:

1.Calculate ending inventory and cost of goods sold for each of the following three methods:

In your calculations round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar.Cost Flow AssumptionEnding InventoryCost of Goods Solda.Weighted average$$b.FIFO$$c.LIFO$$

2.Assume an estimated tax rate of 30%. How much more or less (indicate which) will Carter pay in taxes by using FIFO instead of LIFO?

Difference in taxes under FIFO vs. LIFO