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 $32. A summary of purchases during the current period follows. Beginning Inventory Purchase #1 Purchase #2 Purchase #3 Units Unit Cost Cost 1,000 $32 $32,000 1,800 34 61,200 800 38 30,400 1,200 41 49,200 During the current period, Chen sold 2,800 units. (a) 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 $0 Cost of goods sold Use negative signs with answers, when appropriate. $0 Transaction Record FIFO cost of goods sold Cash Asset + 0 Noncash Assets Balance Sheet = Liabilities + 0 0 Contributed Earned Capital + Capital 0 0 Revenue Income Statement 0 . Expenses B 0 Net Income 0 (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.

Applying and Annalyzing inventory Costang Methods: At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of 532 . A summary of purchases during the current period follows. During the current period, Chen sold 2,800 units. (a) 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 balances Cost of goods sold Use negative signs with answers, when appropriate. (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