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PR 6-5A Periodic Inventory by Three Methods Obj. 2, 4 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: Inventory Purchases Invoices Model Inventory, January 1 1st 2nd 3rd A10 4 at $ 64 4 at $ 70 4 at $ 76 B15 8 at $176 4 at 158 3 at 170 6 at 184 E60 3 at 75 3 at 65 15 at 68 9 at 70 G83 7 at 242 6 at 250 5 at 260 10 at 259 334 12 at 240 10 at 246 16 at 267 16 at 270 M90 2 at 108 2 at 110 3 at 128 3 at 130 Q70 5 at 160 4 at 170 4 at 175 7 at 180 Instructions 1. Determine the cost of the inventory on December 31 by the first in, first-out method. Present data in columnar form, using the following headings: Tirane Focus 6 de Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: Model Quantity Unit Cost Total Cost 2. 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 li for each purchase. 3. 4. Answer Check Figure: $10,700 5. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 6. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 7. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices. Principles of Accounting I BUSI 201-01 Fall 2020 In Class Assignments Chapter 6 Sale EX 6-7 FIFO and LIFO Costs under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 8,100 units at $180 5,300 units at $300 First purchase 15,000 units at $185 Sale 13,000 units at $300 Second purchase 16,000 units at $192 Sale 14,000 units at $300 The firm uses the perpetual inventory system, and there are 6,800 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (a) FIFO and (b) LIFO? Answer Check Figure: b. $1,258,000 EX 6-8 Weighted Average Cost Flow Method under Perpetual Inventory System Focus BE hp

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