Periodic Inventory by Three Methods

Pappa's Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 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 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
Model	Quantity		Unit Cost		Total Cost
C55	fill in the blank 1	$	fill in the blank 2	$	fill in the blank 3
C55	fill in the blank 4		fill in the blank 5		fill in the blank 6
D11	fill in the blank 7		fill in the blank 8		fill in the blank 9
D11	fill in the blank 10		fill in the blank 11		fill in the blank 12
F32	fill in the blank 13		fill in the blank 14		fill in the blank 15
F32	fill in the blank 16		fill in the blank 17		fill in the blank 18
H29	fill in the blank 19		fill in the blank 20		fill in the blank 21
K47	fill in the blank 22		fill in the blank 23		fill in the blank 24
K47	fill in the blank 25		fill in the blank 26		fill in the blank 27
S33	fill in the blank 28		fill in the blank 29		fill in the blank 30
X74	fill in the blank 31		fill in the blank 32		fill in the blank 33
Total				$	fill in the blank 34

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.

Pappa's Appliances Cost of the Inventory-LIFO Method December 31
Model	Quantity		Unit Cost		Total Cost
C55	fill in the blank 35	$	fill in the blank 36	$	fill in the blank 37
C55	fill in the blank 38		fill in the blank 39		fill in the blank 40
D11	fill in the blank 41		fill in the blank 42		fill in the blank 43
D11	fill in the blank 44		fill in the blank 45		fill in the blank 46
F32	fill in the blank 47		fill in the blank 48		fill in the blank 49
H29	fill in the blank 50		fill in the blank 51		fill in the blank 52
K47	fill in the blank 53		fill in the blank 54		fill in the blank 55
K47	fill in the blank 56		fill in the blank 57		fill in the blank 58
S33	fill in the blank 59		fill in the blank 60		fill in the blank 61
X74	fill in the blank 62		fill in the blank 63		fill in the blank 64
X74	fill in the blank 65		fill in the blank 66		fill in the blank 67
Total				$	fill in the blank 68

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

Pappa's Appliances Cost of the Inventory-Weighted Average Method December 31
Model	Quantity		Unit Cost		Total Cost
C55	fill in the blank 69	$	fill in the blank 70	$	fill in the blank 71
D11	fill in the blank 72		fill in the blank 73		fill in the blank 74
F32	fill in the blank 75		fill in the blank 76		fill in the blank 77
H29	fill in the blank 78		fill in the blank 79		fill in the blank 80
K47	fill in the blank 81		fill in the blank 82		fill in the blank 83
S33	fill in the blank 84		fill in the blank 85		fill in the blank 86
X74	fill in the blank 87		fill in the blank 88		fill in the blank 89
Total				$	fill in the blank 90

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?