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 $10. 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 $ 10 $10,000 Purchase # 1 1 ,800 11 19,800 Purchase # 2 0 0 13 10,400 Purchase 3 1,200 15 18,000 la) 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 so Cost of goods sold $ 0 Use negative signs with answers, when appropriate. Balance Sheet Income Statement Transaction Noncash Assets Contributed Capital Earned Capital Cash Asset Cash Asset Liabilities Revenue - Expenses income Record FIFO 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 5 0 Cost of goods sold 50 Assume that Chen uses the average cost method. Compute both cost of food sold for the current period and the ending inventory balance. (HINT: Do not found average cost per unit for calculations Use negative signs with answers, when appropriate. Balance Sheet Income Statement Noncash Assets Net Transaction Record FIFO cost of goods sold Cash Asset + 0 = Contributed Capital Liabilities Earned Capital Revenue - Expenses Income (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 so Cost of goods sold $ 0 (C) Assume that Chen uses the average cost method. Compute both cost of good sold for the current period and the ending inventory balance. (HINT: Do not round average cost per unit for calculations.) Ending inventory balance so Cost of goods sold 50 (d) Which of these three inventory costing methods would you choose to 1. Reflect what is probably the physical flow of goods? CLIFO/FIFO Average Cost 2. Minimize income taxes for the period? CLIFO CFIFO Average Cost 3. Report the largest amount of income for the period? LIFO FIFO Average Cost Please answer all parts of the