386 Chapter 7 Inventories OBJ. 2,4 1. $10,700 Excel PR 7-5A Dymac Appliances uses the periodic inventory system. Details regarding the inventory of Periodic inventory by three methods appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows: Purchases Invoices Inventory Count, Inventory, Model October 31 3rd 2nd November 1 1st A10 4 at $ 70 4 at $ 64 6 4 at $ 76 B15 8 at $176 3 at 170 4 at 158 8 6 at 184 E60 3 at 75 15 at 68 3 at 65 5 9 at 70 G83 7 at 242 6 at 250 5 at 260 10 at 259 9 12 at 240 10 at 246 16 at 267 16 at 270 15 M90 2 at 108 2 at 110 3 at 128 3 at 130 5 Q70 5 at 160 4 at 170 4 at 175 7 at 180 o in ani 0 J34 Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: Unit Cost Total Cost Model Quantity If the inventory of a particular model comprises one entire purchase 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 December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted 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) declining prices. Atory, June 30 1. $78,545 PR 7-5B Periodic inventory by three methods Pappa's Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are summarized as follows: OB), 2,4 x Excel Purchases Invoices Model C55 D11 F32 H29 K47 S33 X74 Inventory, January 1 3 at $1,040 9 at 639 5 at 240 6 at 305 520 1st 3 at $1,054 7 at 645 3 at 260 3 at 310 8 at 531 4 at 222 6 at 36 Inventory Count, 2nd 3rd December 31 3 at $1,060 3 at $1,070 4 6 at 666 6 at 675 11 1 at 260 1 at 280 2. 3 at 316 4 at 317 4 4 at 549 6 at 542 8 4 at 232 2 8 at 37 7 at 39 7 6 at 4 at 35 Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: Total Cost Model Quantity Unit Cost If the inventory of a particular model comprises one entire purchase 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 December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted 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) declining prices