Inventory Costing Methods-Periodic Method Chou Sales Corporation uses the periodic inventory system. On January 1, Chou 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: Feb. 2 Apr. 6 July 10 Aug. 9 Oct. 23 Dec. 30 a. b. Unit Cost C. $22 25 28 Units Purchased 1,800 800 1,400 Units Sold 400 Required Assume that Chou 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 Chou 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 Chou uses the weighted-average cost method. Compute the cost of goods sold fo the year and the ending inventory balance at December 31 for product A. d. Assuming that Chou's products are perishable items, which of the three inventory costing meth ods would you choose to: 1. Reflect the likely goods flow through the business? 2. Minimize income taxes for the period? 3. Report the largest amount of net income for the period? Explain your answers. 1,600 800 halow ore data from the Southern Cor

Inventory Costing Methods-Periodic Method Chou Sales Corporation uses the periodic inventory system. On January 1 , Chou 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: Required a. Assume that Chou 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. b. Assume that Chou 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. c. Assume that Chou uses the weighted-average cost method. Compute the cost of goods sold fo the year and the ending inventory balance at December 31 for product A. d. Assuming that Chou's products are perishable items, which of the three inventory costing meth ods would you choose to: 1. Reflect the likely goods flow through the business? 2. Minimize income taxes for the period? 3. Report the largest amount of net income for the period? Explain your answers