Inventory Costing Methods: Periodic System
Not what you're looking for?
The following information is available concerning the inventory of Carter Inc.:
Units Unit Cost
Beginning Inventory 200 $10
Purchases:
March 5 300 11
June12 400 12
August 23 250 13
October 2 150 15
During the year, Carter sold 1,000 units. It uses a periodic inventory system.
Required
1. Calculate ending inventory and cost of good sold for each of the following three methods:
a. 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? Explain your answer.
Purchase this Solution
Solution Summary
This response will calculate the ending inventory and cost of goods, and the amount of taxes Carter Inc will need to pay.
Solution Preview
(1)
a. The total costs of inventory = 200 units * $10 + 300 units * $11 + 400 units * $12 + 250 units * $13 + 150 units * $15 = $15,600
Weighted average cost per unit = $15,600 / (200 + 300 + 400 + 250 + 150) = $12
cost of goods sold = 1,000 units * $12
Ending inventory = ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.