56-23. Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $32. A summary of purchases during the current period follows. LO1 Units Unit Cost Cost Beginning Inventory Purchases:#1 #2 #3 1,000 1,800 800 1,200 $32 34 38 41 $32,000 61,200 30,400 49,200 During the current period, Chen sold 2,800 units. a. Assume that Chen uses the first-in, first-out method. Compute both cost of goods sold for the current period and the ending inventory balance. Use the financial statement effects template to record cost of goods sold for the period. b. Assume that Chen uses the last-in, first-out method. Compute both cost of goods sold for the current period and the ending inventory balance. c. Assume that Chen uses the average cost method. Compute both cost of goods sold for the current period and the ending inventory balance. d. Which of these three inventory costing methods would you choose to: 1. Reflect what is probably the physical flow of goods? Explain. 2. Minimize income taxes for the period? Explain. 3. Report the largest amount of income for the period? Explain