Periodic Inventory by Three Methods

Pappa's Appliances uses the periodic inventory system. Detailsregarding the inventory of appliances at January 1, purchasesinvoices during the year, and the inventory count at December 31are 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 onDecember 31 by the first-in, first-out method.

If the inventory of a particular model comprises one entirepurchase plus a portion of another purchase acquired at a differentunit cost, use a separate line for each purchase. If units are ininventory at two different costs, enter the units PURCHASED MOSTRECENTLY first.

Pappa's Appliances Cost of the Inventory-FIFO Method December 31
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 onDecember 31 by the last-in, first-out method.

If the inventory of a particular model comprises one entirepurchase plus a portion of another purchase acquired at a differentunit cost, use a separate line for each purchase. If units are ininventory 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		$		$
C55
D11
D11
F32
H29
K47
K47
S33
X74
X74
Total				$

3. Determine the cost of the inventory onDecember 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		$		$
D11
F32
H29
K47
S33
X74
Total				$

4.   would be preferred for incometax purposes in periods of declining prices.