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 $24. A summary of purchases during the current period follows:

		Units	Unit Cost	Cost
Beginning Inventory		1,000	$24	$24,000
Purchases:	#1	1,800	26	46,800
	#2	800	30	24,000
	#3	1,200	33	39,600

During the current period, Chen sold 2,800 units. a. Assume that Chen uses the first-in, first-out method. Compute its cost of goods sold for the current period and the ending inventory balance.

	Cost of Goods Sold	$Answer
	Ending Inventory	$Answer

b. Assume that Chen uses the last-in, first-out method. Compute its cost of goods sold for the current period and the ending inventory balance.

	Cost of Goods Sold	$Answer
	Ending Inventory	$Answer

c. Assume that Chen uses the average cost method. Compute its cost of goods sold for the current period and the ending inventory balance.

	Cost of Goods Sold	$Answer
	Ending Inventory	$Answer