Inventory Costing MethodsPerpetual System (Appendix)

The following information is available concerning Stillwater Inc.:

	Units	Unit Cost
Beginning inventory	200	$10
Purchases:
March 5	300	11
June 12	400	12
August 23	250	13
October 2	150	15

Stillwater, which uses a perpetual system, sold 1,000 units for $22 each during the year. Sales occurred on the following dates:

	Units
February 12	150
April 30	200
July 7	200
September 6	300
December 3	150

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 three decimal places. Round all other calculations and your final answers to the nearest dollar

2. 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?