Applyling 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 $23. A summary of purchases during the current period follows: c. Assume that Chen uses the average cost method. Compute its cost of goods sold for the current period and the ending inventory balance, 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 $23. A summary of purchases during the current c. Assume that Chen uses the average cost method. Compute its cost of goods sold for the current period and the ending inventory balance. 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 $23. A summary of purchases during the current period foliows: During the current period, chen sold 2,800 units. a. Assume that Chen uses the firstin, first out method, Compute its cost of goods sold for the current period and the ending inventory balance. 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. Cout el Cicods Sold Ending truentory 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