Inventory Costing Methods$-$Periodic Method Chen Sales Corporation uses the periodic inventory system. On January $1,$ Chen had: $1,000$ units of product A with a unit cost of $$90$ per unit. A summary of purchases and sales during the year follows:

Unit

Cost Units

Purchased Units

Sold

Feb$\mathrm{.}2400$

Apr$\mathrm{.}6$ $$921,800$

July $101,600$

Aug$\mathrm{.}996800$

Oct$\mathrm{.}23800$

Dec$\mathrm{.}30991,200$

Required

Assume that Chen 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 Chen 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 Chen uses the weighted$-$average cost method. Compute the cost of goods sold for the year and the ending inventory balance at December $31$ for product A$.$

Do not round until your final answers. Round your answers to the nearest dollar.

a$.$ First$-$in$,$ First$-$out:

Ending Inventory Answer

Cost of Goods Sold Answer

b$.$ Last$-$in$,$ first$-$out:

Ending Inventory Answer

Cost of Goods Sold Answer

c$.$ Weighted Average

Ending Inventory Answer

Cost of goods sold Answer

d$.$ Assuming that Chen$$s products are perishable items, which of the three inventory costing methods would you choose to:

Assume this is during a period of rising costs.

$1.$ Reflect the likely goods flow through the business? Answer

First$-$in$,$ first out

$2.$ Minimize income taxes for the period? Answer

Last$-$in$,$ first out

$3.$ Report the largest amount of net income for the period? Answer

First$-$in$,$ first out