PR 6-5A. Periodic Inventory by Three Methods Obj. 2, 4 Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows: Purchases Invoices Model Inventory January 251 and 3rd Inventory Count December 31 A10 4 at $70 4 at $ 76 6 BIS 8 at $176 4 at $64 4 at 158 3 at 65 3 at 170 5 at 184 560 3 at 25 15 at 68 at 70 5 683 7 at 242 6 at 250 5 at 260 10 at 259 9 134 12 at 240 10 at 246 16 at 267 16 at 15 M90 2 at 108 2 at 110 3 at 128 3 at 10 5 070 5 at 150 4 at 170 4 at 17 7a18 8 Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, us- ing the following headings: Model Quantity Unit Cost Total Cost If the inventory of a particular model comprises one entire purchase plus a por- tion of another purchase acquired at a differ- ent unit cost, use a separate line for each purchase. Answer 2. Check Figure: $10,700 Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indic- ated in (1) Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices. 18 minutes 14 pages left