4a. Which inventory method would be preferred for income tax purposes in periods of rising prices? 4b. Which inventory method would be preferred for income tax purposes in periods of declining prices? Periodic inventory by three methods follows: Required: 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. enter the units PURCHASED MOST RECENTLY first. 3. Determine the cost of the inventory on December 31 by the weighted average cost method. Dymac Appliances 2. Determine the cost of the inventory on December 31 by the last-in, first-out method. enter the OLDEST units first