p64 Inventory by three cost flow methods ils regarding the inventory of appliances at January 1, 2017, purchases invoices during ry count at December 31, 20Y7, of Icelander Appliances are sum- Obj 6, 7 the year, and the invento marized as follows Purchases Invoices 3rd nventory Count. 6 at $225 1.$11,227 January 1 9 at $213 20 at $120 6 at $305 2 at $520 6 at $520 Model 1st December 31 101Sx 378Wh 661Qu 913Vn 7 at $215 12 at $130 6 at $222 3 at $310 2 at $527 8 at $531 4 at $222 12 at $36 4 at $130 3 at $316 2 at $530 4 at $549 4 at $232 16 at $37 4 at $140 4 at $317 2 at $535 6 at $542 8 at $35 14 at $39 12 Instructions 1. Determine the cost of the inventory on December 31, 20Y7, by the first-in, first-out method. Present data in columnar form, using the following headings: Model Quantity Unit Cost Total Cost 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. 2. Determine the cost of the inventory on December 31, 20Y7, by the last-in, first-out method, method following the procedures indicated in (D. Determine the cost of the inventory on December 31, 20Y7, by the average cost 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) declining prices