Chapter 06 Homework (Application) Periodic Inventory by Three Methods Dymac Appliances uses the periodic inventory system. Details regarding the inventory of 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, January 1 Inventory Count, December 31 Model 1st 2nd 3rd A10 4 at $ 64 4 at $ 70 170 $ 76 184 B15 $ 176 4 at 4 at 3 at 15 at 158 8 at 3 at 6 at E60 75 65 68 9 at 70 > G3 3 at 6 at 5 9 7 0 242 250 5 at 260 259 10 at 16 at J34 12 at 240 10 at 246 267 270 15 2 at 108 2 at 110 16 at 3 at 4 at 128 M90 Q70 130 3 at 7 at 5 at 160 4 at 170 175 180 Required: 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. 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. If units are in inventory at two different costs, enter the units PURCHASED MOST RECENTLY first. Dymac Appliances Cost of the Inventory-FIFO Method December 31 Model Quantity Unit Cost Total Cost A10 A10 B15 B15 E60 G83 334 M90 M90 070 070 Total 2. Determine the cost of the inventory on December 31 by the last-in, first-out method. 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. If units are in inventory at two different costs, enter the OLDEST units first. Dymac Appliances Cost of the Inventory-LIFO Method December 31 Quantity Total Cost Model Unit Cost A10 A10 B15 E60 E60 G83 G83 334 334 M90 M90 M90 Q70 070 Total 3. Determine the cost of the inventory on December 31 by the weighted average cost method. Dymac Appliances Cost of the Inventory-Weighted Average Method December 31 Total Cost Model Quantity Unit Cost A10 B15 E60 G83 334 M90 Q70 Total 4a. Which inventory method would be preferred for income tax purposes in periods of rising prices? 4b. Which inventory method would be preferred for income tax purposes in periods of declining prices? Check My Work