A) 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 $30. A summary of purchases during the current period follows. During the period, Chen sold 2,800 units.

	Units	Unit Cost	Cost
Beginning Inventory	1,000	$ 30	$ 30,000
Purchase #1	1,800	32	57,600
Purchase #2	800	36	28,800
Purchase #3	1,200	39	46,800

(a) Assume that Chen uses the first-in, first-out method. Compute both cost of good 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. Ending inventory balance $Answer Cost of goods sold $Answer

Use negative signs with answers, when appropriate.

B) Running Elf Company received an advance payment of $156,000 for a consulting contract during the year. The balance in the Unearned Consulting Fees account at the beginning of the year was $15,000. At the end of the year, $8,000 was still unearned. How much will Running Elf report as Consulting Revenue on its income statement for the year?

C)Conrad Construction Corp. has a $20 million contract to construct a building. The company estimates a gross profit of $4 million. During the current year, the company incurred $2 million of costs on the contract. Under the percentage-of-completion method, how much will Conrad Construction Corp. report as revenue in the current year? O $2,000,000 0 $10,000,000 0 $4,000,000 0 $2,500,000