Periodic inventory by three methods Dymac Appilances uses the periodic inventory system. Details regarding the invontory of appliances at January 1 , purchases invoices during the next 12 months, and the inventery count at December 31 ars summarized as follows: 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 anceher purchase acquired at a different unit cost, use a separate line for aach purctuse. If units are in inventory at two different costs, enter the units fufchasfo woST RECE'TLY first. 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 entre purchase plos 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 pURCMASED MOST RECENTLY first. Dymac Appliances Cost of the Inventory-FIFO Method 2. Dotermine 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 far each purchase. If units are in inventory at two different costs, enter the OLDEST units first. 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 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 Deramhar 21 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