Question
Inventory Costing MethodsPerpetual System (Appendix) The following information is available concerning Stillwater Inc.: Units Unit Cost Beginning inventory 210 $11 Purchases: March 5. 297 12
Inventory Costing MethodsPerpetual System (Appendix) The following information is available concerning Stillwater Inc.:
Units Unit Cost
Beginning inventory 210 $11
Purchases:
March 5. 297 12
June 12 396 13
August 23 255 14
October 2 152 16
Stillwater, which uses a perpetual system, sold 1,003 units for $20 each during the year. Sales occurred on the following dates:
Units
February 12 151
April 30 198
July 7 198
September 6 304
December 3 152
Calculate ending inventory and cost of goods sold for each of the following three methods: In your calculations, round average unit cost to three decimal places. Round all other calculations and your final answers to the nearest dollar. Methods include: weighted average, FIFO and LIFO.
Assume the use of the perpetual system and an estimated tax rate of 30%. How much more or less (indicate which) will Stillwater pay in taxes by using LIFO instead of FIFO? If required, round your answer to the nearest dollar.
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