Inventory Costing Methods-Periodic Method Chou Sales Corporation uses the periodic inventory system. On January 1, 2018, Chou had 1,000 units of product A with a unit cost of \(\$ 20\) per unit. A summary of purchases and sales during 2018 follows:

Required

a. Assume that Chou uses the first-in, first-out method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31,2018 , for product A.

b. Assume that Chou uses the last-in, first-out method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31, 2018, for product A.

c. Assume that Chou uses the weighted-average cost method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31, 2018, for product A.

d. Assuming that Chou's products are perishable items, which of the three inventory costing methods would you choose to:

1. Reflect the likely goods flow through the business?

2. Minimize income taxes for the period?

3. Report the largest amount of net income for the period?

Explain your answers.

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Unit Cost Units Purchased Units Sold Feb. 2. Apr. 6 July 10 Aug. 9. Oct. 23 400 $22 1,800 1,600 25 800 800 Dec. 30... 28 1,400