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 $15. 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	$ 15	$ 15,000
Purchase #1	1,800	14	25,200
Purchase #2	800	16	12,800
Purchase #3	1,200	19	22,800

Assume that Chen uses the average cost method. Compute both cost of good sold for the current period and the ending inventory balance. (Hint: Round average cost per unit two decimal places prior to calculating the Ending inventory balance. Calculate the Cost of Goods Sold (CGS) as: (CGS = Cost of goods available for sale - Ending inventory balance.)

Cost of goods sold =

Ending Inventory =