eBook Show Me How Calculator Print Item 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   Model Inventory,January 1    1st    2nd    3rd    Inventory Count,December 31 A10 __ 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 AppliancesCost of the Inventory-FIFO MethodDecember 31 Model Quantity   Unit Cost   Total Cost A10   $   $   A10           B15           B15           E60           G83           J34           M90           M90           Q70           Q70           Total       $   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 AppliancesCost of the Inventory-LIFO MethodDecember 31 Model Quantity   Unit Cost   Total Cost A10   $   $   A10           B15           E60           E60           G83           G83           J34           J34           M90           M90           M90           Q70           Q70           Total       $   3.  Determine the cost of the inventory on December 31 by the weighted average cost method. Dymac AppliancesCost of the Inventory-Weighted Average MethodDecember 31 Model Quantity   Unit Cost   Total Cost A10   $   $   B15           E60           G83           J34           M90           Q70           Total       $   4a. Which inventory method would be preferred for income tax purposes in periods of rising prices?  FIFO  4b. Which inventory method would be preferred for income tax purposes in periods of declining prices?

Survey of Accounting (Accounting I)
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Chapter6: Receivables And Inventories
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Problem 6.4.1P: Inventory by three cost flow methods Details regarding the inventory of appliances on January 1,...
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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  

Model
Inventory,
January 1

   1st

   2nd

   3rd
   Inventory Count,
December 31
A10 __ 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 31
Model Quantity   Unit Cost   Total Cost
A10   $   $  
A10          
B15          
B15          
E60          
G83          
J34          
M90          
M90          
Q70          
Q70          
Total       $  

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 31
Model Quantity   Unit Cost   Total Cost
A10   $   $  
A10          
B15          
E60          
E60          
G83          
G83          
J34          
J34          
M90          
M90          
M90          
Q70          
Q70          
Total       $  

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 31
Model Quantity   Unit Cost   Total Cost
A10   $   $  
B15          
E60          
G83          
J34          
M90          
Q70          
Total       $  

4a. Which inventory method would be preferred for income tax purposes in periods of rising prices?

 FIFO 

4b. Which inventory method would be preferred for income tax purposes in periods of declining prices?

  

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