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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

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
Model Inventory, January 1 1st 2nd 3rd Inventory Count, December 31
A10 __ 4 at $ 33 4 at $ 36 4 at $ 39 5
B15 8 at $ 88 4 at 79 3 at 85 6 at 92 7
E60 3 at 73 3 at 63 15 at 66 9 at 68 5
G83 7 at 236 6 at 244 5 at 254 10 at 253 9
J34 12 at 73 10 at 75 16 at 82 16 at 83 13
M90 2 at 116 2 at 118 3 at 136 3 at 138 5
Q70 5 at 168 4 at 178 4 at 183 7 at 188 8

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
J34
M90
M90
Q70
Q70
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
Model Quantity Unit Cost Total Cost
A10
A10
B15
E60
E60
G83
G83
J34
J34
M90
M90
M90
Q70
Q70
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
Model Quantity Unit Cost Total Cost
A10
B15
E60
G83
J34
M90
Q70
Total

4.

FIFO or LIFO?

________ would be preferred for income tax purposes in periods of rising prices.

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