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 Chapter 7 Inventories 03.2, PR 7-54 Periodic inventory by three methods count at December 31 are summarized as follows: Purchases Invoices Inventory, January 1 Model A10 B15 E60 G83 Inventory Count, December 31 6 8 5 9 15 1st 2nd 3rd 4 at 5 64 4 at $ 70 4 at $ 76 4 at 158 3 at 170 6 at 184 3 at 65 15 at 68 9 at 70 6 at 2505 at 260 10 at 259 10 at 246 16 at 267 16 at 270 2 at 1103 at 128 3 at 130 4 at 1704 at 1757 at 180 Bat $176 3 at 75 7 at 242 12 at 240 2 at 108 5 at 160 M90 070 8 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 Quantity Unit Cost Total 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). Discuss which method (FIFO or LIFO) would be preferred for income tax pur- poses in periods of (a) rising prices and (b) declining prices. PR-44