Artic Appliances uses the periodic inventory system. Details regarding the inventory of appliances January 1, 2012, purchases invoices during the year, and the inventory count at December 31, 2012, are summarized as follows:

Instructions1. Determine the cost of the inventory on December 31, 2012, by the first-in, first-out method. Present data in columnar form, using the following headings:Model Quantity Unit Cost Total CostIf the inventory of a particular model comprises one entire purchases plus a portion of another purchases acquired at a different unit cost, use a separate line for each purchase.2. Determine the cost of the inventory on December 31, 2012, by the last-in, first-out method, following the procedures indicated in (1).3. Determine the cost of the inventor yon December 31, 2012 by the average cost method, using the columnar headings indicated in (1).4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) Rising price and (b) Declining prices.

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Purchases Invoices Inventory Count, December 31 Inventory, January 1 1st Model AK82 Srd 2nd 3 at 5530 3 at $535 6 at 222 3 at $527 7 at 215 3 at 65 3 at 310 Bat 531 4 at 222 6 at 3 at $520 9 at 213 5 at 60 6 at 305 6 at 520 6 at 225 t at 65 3at 316 12 CO62 DE03 1at 70 4 at 317 FL12 4. 4 at 549 4 ar 232 37 8 at 6 at 542 7. MED9 NM57 2. TN33 4 at 35 7 at 39 36