Inventory Costing MethodsPerpetual System (Appendix)

The following information is available concerning Stillwater Inc.:

	Units	Unit Cost
Beginning inventory	210	$9
Purchases:
March 5	298	10
June 12	404	11
August 23	245	12
October 2	149	14

Stillwater, which uses a perpetual system, sold 994 units for $23 each during the year. Sales occurred on the following dates:

	Units
February 12	145
April 30	204
July 7	198
September 6	298
December 3	149

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.

Cost Flow Assumption	Ending Inventory	Cost of Goods Sold
a. Moving average	$	$
b. FIFO	$	$
c. LIFO	$	$

2. Which method(s) give(s) a different answer depending on whether a company uses a periodic or a perpetual inventory system?

3. 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.

Difference in taxes under LIFO vs. FIFO	$
Does this amount represent more or less taxes paid using LIFO?