Chen Sales Corporation uses the periodic inventory system. On January 1, Chen had: 1,000 units of product A with a unit cost of $20 per unit. A summary of purchases and sales during the year follows: Unit Cost Units Purchased Units Sold Feb.2 400 Apr.6 $22 1,800 July 10 1,600 Aug.9 26 800 Oct.23 800 Dec.30 29 1,200 Required Assume that Chen uses the first-in, first-out method. Compute the cost of goods sold for the year and the ending inventory balance at December 31 for product A. Assume that Chen uses the last-in, first-out method. Compute the cost of goods sold for the year and the ending inventory balance at December 31 for product A. Assume that Chen uses the weighted-average cost method. Compute the cost of goods sold for the year and the ending inventory balance at December 31 for product A. a. First-in, First-out: Ending Inventory Answer Cost of Goods Sold Answer b. Last-in, first-out: Ending Inventory Answer Cost of Goods Sold Answer c. Weighted Average Ending Inventory Answer Cost of goods sold Answer d. Assuming that Chens products are perishable items, which of the three inventory costing methods would you choose to: Assume this is during a period of rising costs. 1. Reflect the likely goods flow through the business? Answer 2. Minimize income taxes for the period? Answer 3. Report the largest amount of net income for the period? Answer