Problem 6-4 Attached is my questions, this is a practice problem and I am preparing for the midterm.

Problem 6-4 Attached is my questions, this is a practice problem and I am preparing for the midterm.

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Problem 6-4 Inventory by three cost flow methods
Details regarding the inventory of appliances at January 1, 2012, purchases invoices during
the year, and the inventory count at December 31, 2012, of Icelander Appliances are summarized as follows:
Purchases Invoices
Model
Inventory, January 1
1st
2nd
3rd
Inventory Count, December 31
101Sx
9 at $213
7 at $215
6 at $222
6 at $225
9
256Br
20 at $120
12 at $130
4 at $130
4 at $140
8
378Wh
6 at $305
3 at $310
3 at $316
4 at $317
4
590Pm
2 at $520
2 at $527
2 at $530
2 at $535
4
661Qu
6 at $520
8 at $531
4 at $549
6 at $542
7
828Ts
n/a
4 at $222
4 at $232
n/a
2
913Vn
8 at $35
12 at $36
16 at $37
14 at $39
12
Instructions
1.) Determine the cost of the inventory on December 31, 2012, 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, 2012, by the last-in, first-out method, following the procedures indiin (1).
3.) Determine the cost of the inventory on December 31, 2012, by the average cost method, using 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.

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