I don't know if my question went through, but I was wondering if you could help me solve this? maybe write out how to do it? Comparison of Inventory Costing Methods-Periodic SystemBitten Company's inventory records show 603 units on hand on October 1 with a unit cost of $5 each. The following transactions occurred during the month of October:DateOctober 4October 8October 9October 18October 20October 29Unit Purchases791 @ $5.41694 @ $5.89Unit Sales507 @ $10.00696 @ $10.00Inventory System Cost of Goods SoldWeighted average $XFIFOLIFO797 @ $11.00796 @ $5.86All expenses other than cost of goods sold amount to $3,050 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes.Required:1. Prepare a chart comparing cost of goods sold and ending inventory using the periodic system and the following costing methods. In your calculations round weighted average unit cost to three decimal places and round all other calculationsand your final answers to the nearest dollar.Bitten CompanyComparison for Cost of Goods Sold and Ending Inventory Usingthe Periodic SystemFor Weighted Average, FIFO and LIFO Cost MethodsEnding Inventory TotalQ00

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Description: I don't know if my question went through, but I was wondering if you could help me solve this? maybe write out how to do it? Comparison of Inventory Costing Methods-Periodic SystemBitten Company's inventory records show 603 units on hand on October 1

Answered: Comparison of Inventory Costing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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I don't know if my question went through, but I was wondering if you could help me solve this? maybe write out how to do it?

Comparison of Inventory Costing Methods-Periodic System
Bitten Company's inventory records show 603 units on hand on October 1 with a unit cost of $5 each. The following transactions occurred during the month of October:
Date
October 4
October 8
October 9
October 18
October 20
October 29
Unit Purchases
791 @ $5.41
694 @ $5.89
Unit Sales
507 @ $10.00
696 @ $10.00
Inventory System Cost of Goods Sold
Weighted average $
X
FIFO
LIFO
797 @ $11.00
796 @ $5.86
All expenses other than cost of goods sold amount to $3,050 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes.
Required:
1. Prepare a chart comparing cost of goods sold and ending inventory using the periodic system and the following costing methods. In your calculations round weighted average unit cost to three decimal places and round all other calculations
and your final answers to the nearest dollar.
Bitten Company
Comparison for Cost of Goods Sold and Ending Inventory Using
the Periodic System
For Weighted Average, FIFO and LIFO Cost Methods
Ending Inventory Total
Q00

Expert Solution

Explanation -

Inventory Valuation Methods are methods of valuation of inventory.

There are three methods of inventory valuation - FIFO, LIFO, and Weighted Average.

1. FIFO Method -

Under FIFO Method, Inventory purchased first is sold first.

2. LIFO Method -

Under LIFO Method, Inventory purchased last is sold first.

3. Weighted Average -

Under the Weighted Average Method, the cost is considered to be average at the time of sale.

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