A10 Inventory by Three CostFlow Methods Details regarding the inventory of appliances on January 1, 2017, purchases invoices during the year, and the inventory count on December 31, 2017, Amsterdam Appliances are are as follow Purchases Invoices Inventory Inventory Count Model January 1 1 2nd 3rd December 31 45644 at 570 45 76 Bat 176 48158 at 170 6184 160 375 at 65 15 at 60 9 70 683 7242 6250 Sat 260 10 at 259 12 at 240 10 3 246 16 at 26716 * 270 15 M90 2108 2 a 110 at 126 3130 070 5 at 160 4 at 170 4 175 7180 Instructions 1. Determine the cost of the inventory on December 31, 2017, by the test out method If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acted at a different un cost use a separate line for each purchase. Under FIFO, a model is in Inventory at two different costs, enter the remaining units that were purchased most recently first First-In, First-Out Method Model Quantity Unit Cost Total Cost A10 BIS JUH! lllll GO MO 2 at 10 2 at 110 3 at 128 3 at 130 070 5at100 4 at 170 4 175 7 at 180 Instructions 1. Determine the cost of the inventory on December 3, 207, by the sout method If the inventory of a picar model comprises one entire purchase a portion of another purchase acquired different unit cost ute a separate ce for each he Under Firo, va model is in Inventory at two different costs, enter the remaining units that were purchased most recently flest First-In, First-Out Method Medel Quantity Unit Cost Total Cost A10 015 160 134 MOO 070 2. Determine the cost of the inventory on December 31, 2017, by the list, first out method, octowing the procedures indkated in (1) Under uro, a model to In inventory at two different costs, enter the remaining units that were purchased earliest first Last-In, First-Out Method Quantity Unit Cost Medel Total Cost AI Next Toat 2. Determine the cout the inventory on December 11, 2017, hy tot fotowing the procedures acted in (1) Under uiro, ir a model is in Inventory at two different costs enter the remaining units that were purchased earliest first Last-In, First Out Method Model Quantity Unit Cost Total Cost ALO 385 EGO GO 354 070 Tu 3. Determine the cost of the inventory on December 31, 2017, the average cu metod Average Cost Mathed Model Quantity Unit Cost Total cost A10 Previous Next Total 3. Determine the cost of the inventory on December 31, 2017, by the average cost method Average Cost Method Quantity Unit Cost Model Total Cost ALO B15 LO Accounting numereld 234 070 Total 4. Which method (Pror LFO) would be preferred for income tax purposes in periods of po? LIPO which method (FIFO or UFO) would be preferred for income tax purposes in periods of declining prices! FIFO O MW in the FIFO method, the first units purchased are assumed to be the first to be sold. Therefore, ending invertory costs for the peredare calculated by using the number of items remaining in the physical inventory times the most recent purchase price. If the number of them in the last purchase layer a less than the number ending inventary, the balance of the ending inventory must be recorded at the cost of the second to last purchase cost. 2. In the UFO method, the last units purchased are med to be the first to be sold. Therefore, the remaining ending invertory for the period is made up of the earliest couts from the beginning inventory. If the number of units in the ending Inventory is greater than the units in the beginning inventory, the crisis will be recorded at the cost of best purchase Predious Net