Model	Inventory, January 1	1st	2nd	3rd	Inventory Count, December 31
BB900	27 at $213	21 at $215	18 at $222	18 at $225	30
C911	10 at 60	6 at 65	6 at 65	2 at 70	4
L100	6 at 305	3 at 310	3 at 316	4 at 317	4
N201	2 at 520	2 at 527	2 at 530	2 at 535	4
Q73	6 at 520	8 at 531	4 at 549	6 at 542	7
Z120	--	4 at 222	4 at 232	----	2
ZZRF	8 at 70	12 at 72	16 at 74	14 at 78	12

Artic Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, 2010, purchases invoices during the year, and the inventory count at December 31, 2010, are summarized as followed above.

1 Determine the cost of the inventory on December 31, 2010, by the first-in,first-out method. Present data in columnar form, using the following headlines, Model, Quanity, Unit Cost, Total Cost. If inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different cost use a seperate line for each purchase. 2.Determine the cost of the inventory on December 31,2010, by the Last-in,First-out method, following the procedures indicated in number 1. 3. Determine the cost of the inventory on Decemeber 31, 2010, by the average cost method, using the columnar method indicated in Number 1 4. Discuss which method ( FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) Declining Prices