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:
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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
ModelInventory,
January 1
1st
2nd
3rdInventory Count,
December 31A10 __ 4 at $ 64 4 at $ 70 4 at $ 76 6 B15 8 at $ 176 4 at 158 3 at 170 6 at 184 8 E60 3 at 75 3 at 65 15 at 68 9 at 70 5 G83 7 at 242 6 at 250 5 at 260 10 at 259 9 J34 12 at 240 10 at 246 16 at 267 16 at 270 15 M90 2 at 108 2 at 110 3 at 128 3 at 130 5 Q70 5 at 160 4 at 170 4 at 175 7 at 180 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 31Model Quantity Unit Cost Total Cost A10 fill in the blank 1 $ fill in the blank 2 $ fill in the blank 3 A10 fill in the blank 4 fill in the blank 5 fill in the blank 6 B15 fill in the blank 7 fill in the blank 8 fill in the blank 9 B15 fill in the blank 10 fill in the blank 11 fill in the blank 12 E60 fill in the blank 13 fill in the blank 14 fill in the blank 15 G83 fill in the blank 16 fill in the blank 17 fill in the blank 18 J34 fill in the blank 19 fill in the blank 20 fill in the blank 21 M90 fill in the blank 22 fill in the blank 23 fill in the blank 24 M90 fill in the blank 25 fill in the blank 26 fill in the blank 27 Q70 fill in the blank 28 fill in the blank 29 fill in the blank 30 Q70 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.
Dymac Appliances
Cost of the Inventory-LIFO Method
December 31Model Quantity Unit Cost Total Cost A10 fill in the blank 35 $ fill in the blank 36 $ fill in the blank 37 A10 fill in the blank 38 fill in the blank 39 fill in the blank 40 B15 fill in the blank 41 fill in the blank 42 fill in the blank 43 E60 fill in the blank 44 fill in the blank 45 fill in the blank 46 E60 fill in the blank 47 fill in the blank 48 fill in the blank 49 G83 fill in the blank 50 fill in the blank 51 fill in the blank 52 G83 fill in the blank 53 fill in the blank 54 fill in the blank 55 J34 fill in the blank 56 fill in the blank 57 fill in the blank 58 J34 fill in the blank 59 fill in the blank 60 fill in the blank 61 M90 fill in the blank 62 fill in the blank 63 fill in the blank 64 M90 fill in the blank 65 fill in the blank 66 fill in the blank 67 M90 fill in the blank 68 fill in the blank 69 fill in the blank 70 Q70 fill in the blank 71 fill in the blank 72 fill in the blank 73 Q70 fill in the blank 74 fill in the blank 75 fill in the blank 76 Total $ fill in the blank 77 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 31Model Quantity Unit Cost Total Cost A10 fill in the blank 78 $ fill in the blank 79 $ fill in the blank 80 B15 fill in the blank 81 fill in the blank 82 fill in the blank 83 E60 fill in the blank 84 fill in the blank 85 fill in the blank 86 G83 fill in the blank 87 fill in the blank 88 fill in the blank 89 J34 fill in the blank 90 fill in the blank 91 fill in the blank 92 M90 fill in the blank 93 fill in the blank 94 fill in the blank 95 Q70 fill in the blank 96 fill in the blank 97 fill in the blank 98 Total $ fill in the blank 99 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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