Details regarding the inventory of appliances at January 1, 2010, purchases invoices during the year, and the inventory count at December 31, 2010, of Arctic

Appliances are summarized as follows:

Instructions1. Determine the cost of the inventory on December 31, 2010, 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 purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase.2. Determine the cost of the inventory on December 31, 2010, by the last-in, first out method, following the procedures indicated in (1).3. Determine the cost of the inventory on December 31, 2010, 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 prices and (b) decliningprices.

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Purchases Invoices Inventory Count, December 31 Inventory, January 1 27 at $213 2nd 18 at $222 65 Model 1st 3rd 18 at $225 BB900 21 at $215 65 30 10 at 2 at 3 at 316 2 at 530 4 at 549 4 at 232 74 2 at 6 at 3 at 310 2 at 527 8 at 531 4 at 222 60 70 C911 L100 N201 Q73 Z120 ZZRF 4 4 6 at 305 2 at 520 6 at 520 4 at 317 2 at 535 6 at 542 2. 12 8 at 12 at 16 at 14 at 70 72 78