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 1st 2nd 3rd January 1 December 31 A10 815 E60 G83 134 M90 Q70 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. 4 at 44 4 at 47 4 at 50 8 at 8 4 at 75 3 at 81 6 at 88 64 7 at 2216 at 229 5 at 3 10 at 238 7 3 at 69 3 at 59 15 at 62 9 at 9 12 at 56 10 at 58 16 at 65 16 at 13 2 at 105 2 at 107 3 at 125 3 at 127 5 at 152 4 at 162 4 at 167 7 at 172 Dymac Appliances Cost of the Inventory-FIFO Method 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 15 B15 E60 G83 4 6 5 9 13 3 M90 Q70 70 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 ModelQuantity A10 A10 B15 E60 E60 G83 Unit Cost Total Cost 134 J34 M90 M90 M90 Q70 M190 70 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 A10 B15 E60 G83 134 M90 Unit Cost Total Cost 70 Total 4. FIFO would be preferred for income tax purposes in periods of rising prices. 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 1st 2nd 3rd January 1 December 31 A10 815 E60 G83 134 M90 Q70 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. 4 at 44 4 at 47 4 at 50 8 at 8 4 at 75 3 at 81 6 at 88 64 7 at 2216 at 229 5 at 3 10 at 238 7 3 at 69 3 at 59 15 at 62 9 at 9 12 at 56 10 at 58 16 at 65 16 at 13 2 at 105 2 at 107 3 at 125 3 at 127 5 at 152 4 at 162 4 at 167 7 at 172 Dymac Appliances Cost of the Inventory-FIFO Method 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 15 B15 E60 G83 4 6 5 9 13 3 M90 Q70 70 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 ModelQuantity A10 A10 B15 E60 E60 G83 Unit Cost Total Cost 134 J34 M90 M90 M90 Q70 M190 70 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 A10 B15 E60 G83 134 M90 Unit Cost Total Cost 70 Total 4. FIFO would be preferred for income tax purposes in periods of rising prices