2 Inventory Costing Methods—Periodic System
The following information is available concerning the inventory of Carter Inc.:
During the year, Carter sold 1,000 units. It uses a periodic inventory system.
1. Calculate ending inventory and cost of goods sold for each of the following three methods:
a. Weighted average
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.