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 $21. A summary of purchases during the current period follows. During the period Chen sold 2.800 units Uits Unit Cost Cent Beginning inventory 1.000 52 521.000 Purchase 100 Parth 09 21 21.500 1.200 30 30.000 Assume that Chen uses the first in first out method. Compute both cost of food sold for the current period and the ending inventory balance Use the financial statement effects template to record cost of poods sold for the period Ending inventory balances Cost of goods sold Usentatives with answer When appropriate Use negative signs with answers, when appropriate. Balance Sheet Income Statement Noncash Assets Cash Asset Earned Capital - Liabilities Contributed Capital Net Income + Transaction Record FIFO cost of goods sold Revenue Expenses (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 s Cost of goods sold (9) 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 balance s Cost of goods sold 5 (d) Which of these three inventory costing methods would you choose to Reflect what is probably the physical flow of goods? OLIFO OFIFO Average cost 2. Minimize income taxes for the period? OLIFO OFIFOC Average cost 3. Report the largest amount of income for the period UFOC FIFO Average cost