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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

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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 next 12 months, and the inventory count at December 31 are summarized as follows: Purchases Invoices Inventory, Inventory Count, Model 2nd 3rd January 1 December 31 $ 40 $ 43 $ 46 5 1st A10 4 at 4 at 4 at 5 - B15 8 at $ 93 4 at 84 3 at 90 6 at 97 7 E60 3 at 65 3 at 55 15 at 58 9 at 60 5 G83 7 at 222 6 at 230 5 at 240 10 at 239 9 334 12 at 83 10 at 85 16 at 92 16 at 93 13 M90 2 at 124 2 at 126 3 at 144 3 at 146 5 Q70 5 at 166 4 at 176 4 at 181 7 at 186 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. 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 334 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 Q70 II 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 334 M90 Q70 Total 334 M90 Q70 Total 4a. Which inventory method would be preferred for income tax purposes in periods of rising prices? 4b. Which inventory method would be preferred for income tax purposes in periods of declining prices

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