Bulldog Appliances uses the periodic inventory system. Details regarding the inventory of… 1 answer below »

Bulldog Appliances uses the periodic inventory system. Details regarding the inventory of appliances at September 1, 2011, purchases invoices during the next 12 months, and the inventory count at August 31, 2012, are summarized as follows:

1. Determine the cost of the inventory on August 31, 2012, by the first-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 for each purchase. Under FIFO, if a model is in inventory at more than one unit cost, enter the unit cost of the 3rd purchase first in the Unit Cost column.Bulldog AppliancesCost of the InventoryAugust 31, 2012Model Quantity Unit Cost Total CostAZ09 $ $ AZ09 GA85 GA85 HI71 KS32 MS17 ND52 ND52 WV63 WV63 Total $ 2. Determine the cost of the inventory on August 31, 2012, 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 for each purchase.Bulldog AppliancesCost of the InventoryAugust 31, 2012Model Quantity Unit Cost Total CostAZ09 $ $ AZ09 GA85 HI71 HI71 KS32 KS32 MS17 MS17 ND52 ND52 ND52 WV63 WV63 Total $ 3. Determine the cost of the inventory on August 31, 2012, by the average cost method.Bulldog AppliancesCost of the InventoryAugust 31, 2012Model Quantity Unit Cost Total CostAZ09 $ $ GA85 HI71 KS32 MS17 ND52 WV63 Total $ 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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