Bulldog Appliances uses the periodic inventory system. Details regarding the inventory of appliances at September 1, 2011, purchases invoices during the next 12 months, and the inventory count at August 31, 2012, are summarized as follows:

Instructions1. Determine the cost of the inventory on August 31, 2012, by the first-in, first-out method. Present data in columnar form, using the following headings: Model Quantity Unit Cost Total CostIf the inventory of a particular model comprises one entire purchases plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase.2. Determine the cost of the inventory on August 31, 2012, by the last-in, first-out method, following the procedures indicated in (1).3. Determine the cost of the inventory on August 31, 2012, by the average cost method, using the columnar headings indicated in (1).4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) Rising prices and (b) Decliningprices.

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Purchases Invoices Inventory Count. August 31 Inventory. September 1 2nd 1st Model AZ09 GABS 3rd 4 at $ 35 3 at s 85 15 at 68 4 at 5 32 4 at 5 79 3 at 65 6 at 250 4 at 5 38 8 at 5 86 3at 75 7 at 242 12 at 6 at 5 92 70 9 at 5 at 260 16 at HI71 K532 10 at 259 16 at 89 3 at 128 4 at 175 10 at 82 13 MS17 ND52 80 2 at 108 5 at 160 90 2 at 110 4 at 170 3 at 130 wV63 7 at 180