Applying and Analyzing Inventory Costing Methods $($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:

Reflect what is probably the physical flow of goods? OLIFO FIFO Average Cost

Minimize income taxes for the period?

OLIFO $$ FIFO OAverage Cost

Report the largest amount of income for the period? OLIFO $O$ FIFO OAverage Cost

At the beginning of the current period, Chen carried $1,000$ units of its product with a unit cost of $$32.$ A summary of purchases during the current period follows.

During the current period, Chen sold $2,800$ units.

$($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 $

Cost of goods sold

Use negative signs with answers, when appropriate.

$($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