1. Inventory Costing Methods-Periodic System Following is an inventory acquisition schedule for
Fees Corp. for 2017 : During the year, Fees sold 11,000 units at $30 each. All expenses except
cost of goods sold and taxes amounted to $60,000. The tax rate is 30%. Required: 1. Compute
cost of goods sold and ending inventory under each of the following three methods listed below
assuming a periodic inventory system 2. Prepare income statements under each of the three
methods.
2. Prepare income statements under each of the three methods. 3. Which method do you
recommend so that Fees pays the least amount of taxes during 2017? 4. Fees anticipates that unit
costs for inventory will increase throughout 2018 . Will Fees be able to switch from the method
you recommended that it in 2017 to another method to take advantage of the increase in prices
for tax purposes?