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:

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.

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.

3. Determine the cost of the inventory on December 31 by the weighted average cost method.

4. Would FIFO or LIFO be preferred for income tax purposes in periods of rising prices?

Purchases Invoices Inventory, January 1 Inventory Count, Model 1st 2nd 3rd December 31 A10 B15 E60 G83 J34 M90 Q70 4 at $ 27 4 at $30 4 at 33 97 65 5 at254 10 at 253 67 3 at 130 7 at 188 90 6 at 8 at 3 at 7 at 12 at 2 at 5 at $93 70 236 57 108 168 7 4 at 3 at 6 at 10 at 843 at 60 15 at 63 9 at 244 59 16 at 66 16 at 13 2 at 110 3 at 128 4 at 178 4 at 183 8