(Chapter 6) Please answer all questions with a red X next to them. Thank you!

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 $30. A summary of purchases during the current period follows. During the period, Chen sold 2,800 units. Units Unit Cost Cost Beginning Inventory Purchase #1 Purchase #2 Purchase #3 s 32 57,600 36 28,800 39 46,800 1,00030 1,800 800 1,200 (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 57,600 x Cost of goods sold 0 Use negative signs with answers, when appropriate. Balance Sheet Earned Capital Capital Contributed Cash AssetAssetsLiabilities Record FIFO cost of goods sold Income Statement Net Revenue Expenses (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 $ 0 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 in Ending inventory balance Cost of goods sold balance. 0 (d) Which of these three inventory costing methods would you choose to: FIFO 1. Reflect what is probably the physical flow of goods? LIFO Average Cost LIFO 2. Minimize income taxes for the period? FIFO Average Cost 3. Report the largest amount of income for the FIFO LIFO Average Cost Check