# The following information is available concerning Stillwater Inc.: Stillwater, which uses a perpetual system, sold 1,000 units for \$22 each

## Question:

The following information is available concerning Stillwater Inc.:

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:
a. Moving average
b. FIFO
c. LIFO
2. For each of the three methods, compare the results with those of Carter in Exercise 5-21. Which method gives 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? Explain your answer.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...