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 $22. A summary of purchases during the current period follows: Units Unit Cost Cost Beginning Inventory 1,000 $22 $22,000 Purchases: #1 1,800 24 43,200 800 22,400 #3 1,200 31 37,200 #2 28 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 $ Ending Inventory $ 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 $ Ending Inventory $ 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 $ Ending Inventory$ d. Which of these three inventory costing methods would you choose to (assume a period of rising prices): 1. Reflect what is probably the physical flow of goods? 2. Minimize income taxes for the period? 3. Report the largest amount of income for the period? Check