Print Question 1 Nor complete Marked out of 17.00 plag question 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 $40. A summary of purchases during the current period follows. During the period. Chen sold 2,800 units Units Unit Cost Cost Beginning inventory 1.000 540 540.000 Purchase 1.800 44 79.200 Purchase 2 300 41.600 Purchase 1200 69.600 (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 s Cost of goods sold Use negative signs with your answers, when appropriate. Balance Sheet Income Statement Cash Asset Transaction Record FIFO cost of goods sold Noncash Assets Liabilities Contributed Capital Earned Capital + Revenue Expenses - Net Income (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 Ending inventory balance $ Cost of goods sold $ (c) Assume that Chen uses the average cost method. Compute both cost of good sold for the current period and the ending inventory balance. Ending Inventory balance $ Cost of goods sold $ (d) Which of these three inventory costing methods would you choose to: 1. Reflect what is probably the physical flow of goods? OLIFO OFIFO Average Cost 2. Minimize income taxes for the period? UFO OFIFO CAverage Cost 3. Report the largest amount of income for the period? OLIFO OFIFO Average Cost