LO2, 3 P6-4A. Inventory Costing MethodsPeriodic Method Chen Sales Corporation uses the penodic invee tory system. On January 1, 2015, Chen had 1,000 units of product A with a unit cost of $20 per una A summary of purchases and sales during 2015 follows: Units Purchased Unit Cost Units Sold 400 Feb. 2. $22 1,800 1,600 Apr. 6 July 10 Aug. 9. 25 800 800 Oct. 23 Dec. 30. 29 1,400 a. Required Assume that Chen uses the first-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product A. Chapter 6 Accounting for Inventory b. Assume that Chen uses the last-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product A. Assume that Chen uses the weighted average cost method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product A. d. Assuming that Chen'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