Periodic Inventory by Three Methods

Pappa's Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, 2016, purchases invoices during the year, and the inventory count at December 31, 2016, are summarized as follows:

Purchases Invoices
Model	Inventory, January 1		1st		2nd		3rd		Inventory Count, December 31
C55	3 at	$ 1,040	3 at	$ 1,054	3 at	$ 1,060	3 at	$ 1,070	4
D11	9 at	$ 639	7 at	645	6 at	666	6 at	675	11
F32	5 at	240	3 at	260	1 at	260	1 at	280	2
H29	6 at	305	3 at	310	3 at	316	4 at	317	4
K47	6 at	520	8 at	531	4 at	549	6 at	542	8
S33			4 at	222	4 at	232			2
X74	4 at	35	6 at	36	8 at	37	7 at	39	7

Required:

1. Determine the cost of the inventory on December 31, 2016, 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.

Pappa's Appliances Cost of the Inventory-FIFO Method December 31, 2016
Model	Quantity		Unit Cost		Total Cost
C55		$		$
C55
D11
D11
F32
F32
H29
K47
K47
S33
X74
Total				$

2. Determine the cost of the inventory on December 31, 2016, 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.

Pappa's Appliances Cost of the Inventory-LIFO Method December 31, 2016
Model	Quantity		Unit Cost		Total Cost
C55		$		$
C55
D11
D11
F32
H29
K47
K47
S33
X74
X74
Total				$

3. Determine the cost of the inventory on December 31, 2016, by the weighted average cost method.

Pappa's Appliances Cost of the Inventory-Weighted Average Method December 31, 2016
Model	Quantity		Unit Cost		Total Cost
C55		$		$
D11
F32
H29
K47
S33
X74
Total				$

4. would be preferred for income tax purposes in periods of declining prices. fifo or lifo