Cost of merchandise sold Gross profit Inventory, June 30 oBJ. 2, 4 PR 7-58 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: Purchases Invoices Inventory Count, December 31 Inventory 3rd Model January 1 C55 D11 F32 H29 6 at 305 3at 310 3 at 316 4 at 317 K47 6 at 520 8at 531 4 at 549 6 at 542 S33 X74 4 at 35 6at36 8 at 37 7at 39 1st at $1,040 3 at $1,054 3 at $1,060 3 at $1,070 9 at 639 7at 645 6 at 666 6at 675 5 at 240 3at 260 1 at 260 1 at 280 4 at 222 4 at 232 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: Model QuantityUnit CostTotal Cost If the inventory of a particular model comprises one entire purchase plus a portion of 2. Determine the cost of the inventory on December 31 by the last-in, first-out method, 3. Determine the cost of the inventory on December 31 by the weighted average cost 4Discuss which method (FIFO or LIFO) would be preferred for income tax another purchase acquired at a different unit cost, use a separate line for each purchase. following the procedures indicated in (1). method, using the columnar headings indicated in (1). purposes in periods of (a) rising prices and (b) declining prices