Question

	Periodic Inventory Method
	Better Bottles, Inc. uses a PERIODIC inventory system and has the following information available:
	Description		# of Units		Cost per Unit		Total Cost
	Beginning inventory		20		$20.00		$400
	Jan 5 sold		15
	Jan 15 purchase		27		$22.00		594
	Jan 18 sold		21
	Jan 20 purchase		33		$30.00		990
	Total goods available for sale		80				$1,984
	Total goods sold		36
	Required:
1	Calculate both Cost of goods sold and Ending inventory using the Periodic FIFO Method.
2	Calculate both Cost of good sold and Ending Inventory using Periodic LIFO Method.
3	Use your calculations from 1-2 and complete the Income Statement.
	The company income tax rate:		0.25
1	FIFO Cost of Goods Sold - PERIODIC
	Units Sold Taken From:		# of Units		Cost per Unit		Total Cost
	Total Cost of Goods Sold FIFO
	FIFO Ending Inventory - PERIODIC
	Inventory Available		# of Units		Cost per Unit		Total Cost
	Beginning inventory
	+Purchase
	+Purchase
	(Less Cost of Goods Sold)
	Ending Inventory FIFO
2	LIFO Cost of Goods Sold - PERIODIC
	Units Sold Taken From:		# of Units		Cost per Unit		Total Cost
	Total Cost of Goods Sold LIFO
	LIFO Ending Inventory - PERIODIC
	Inventory Available		# of Units		Cost per Unit		Total Cost
	Beginning inventory
	+Purchase
	+Purchase
	(Less Cost of Goods Sold)
	Ending Inventory LIFO
3	Income Statement - Periodic Inventory Method
			FIFO		LIFO
	Sales revenue, net		25,000		25,000
	Cost of goods sold
	Gross profit
	Operating expenses		8,000		8,000
	Operating income before tax
	Income tax expense
	Net income