Applying and Analying inventory Costint Methods At the beginning of the content period. Checane 1.000 units of its product that cost of 570A summary of purchases during the current penodols. During the period. Chen sold 200 un Units Unit Ceat Cast Detay 600 520 520.000 Punda 7.100 Purchase 300 300 Purcha 30 NO (a) Assume that Chen uses the first in it out method. Coroute both cost of good for the current period and the coding inventory balance. Use the financial statement effects tomto record cost of goods sold for the period Ending invitary balance Cost of soods solo use negative with riswers, when appropriate Balance Sheet - Labines. Capital Nonca Cash A A Tramadan Capital w Absure that Chen uses the first cut method Compute both cost of good sold for the current period and the name inventory halovich Ending voor balances Cost of goodsad to me that has the cost method Combo cost od sold for the current period and the entry balance Cost food + Balance Sheet Income Statement Noncash Assets Contributed Capital - Liabilities Earned Capital Net Income Revenue Expenses - Transaction Cash Asset Record FFO cost of goods sold (b) Assume that Chen uses the last in first-out method Compute both cost of good sold for the current period and the ending inventory balance Ending inventory balance Cost of goods sold 5 (c) Assume that Chen uses the average cost method Compute both cost of good sold for the current period and the ending inventory balance! Ending inventory balances Cost of goods sold 5 (a) Which of these three inventory costing methods would you choose to 1. Reflect what is probably the physical flow of goods? UFO FIFO Average Cost 2. Minimize income taxes for the period? UFO FIFO Average Cost 3. Report the largest amount of income for the period? UFO FIFO Average Cost Applying and Analying inventory Costint Methods At the beginning of the content period. Checane 1.000 units of its product that cost of 570A summary of purchases during the current penodols. During the period. Chen sold 200 un Units Unit Ceat Cast Detay 600 520 520.000 Punda 7.100 Purchase 300 300 Purcha 30 NO (a) Assume that Chen uses the first in it out method. Coroute both cost of good for the current period and the coding inventory balance. Use the financial statement effects tomto record cost of goods sold for the period Ending invitary balance Cost of soods solo use negative with riswers, when appropriate Balance Sheet - Labines. Capital Nonca Cash A A Tramadan Capital w Absure that Chen uses the first cut method Compute both cost of good sold for the current period and the name inventory halovich Ending voor balances Cost of goodsad to me that has the cost method Combo cost od sold for the current period and the entry balance Cost food + Balance Sheet Income Statement Noncash Assets Contributed Capital - Liabilities Earned Capital Net Income Revenue Expenses - Transaction Cash Asset Record FFO cost of goods sold (b) Assume that Chen uses the last in first-out method Compute both cost of good sold for the current period and the ending inventory balance Ending inventory balance Cost of goods sold 5 (c) Assume that Chen uses the average cost method Compute both cost of good sold for the current period and the ending inventory balance! Ending inventory balances Cost of goods sold 5 (a) Which of these three inventory costing methods would you choose to 1. Reflect what is probably the physical flow of goods? UFO FIFO Average Cost 2. Minimize income taxes for the period? UFO FIFO Average Cost 3. Report the largest amount of income for the period? UFO FIFO Average Cost
