Question text

Inventory Costing MethodsPerpetual Method

Chou Sales Corporation uses the perpetual inventory system. On January 1, 2018, Chen had 1,000 units of product A with a unit cost of $20 per unit. A summary of purchases and sales during 2018 follows:

	Unit Cost	Units Purchased	Units Sold
Feb.2			400
Apr.6	$22	1,800
July 10			1,600
Aug.9	25	800
Oct.23			800
Dec.30	28	1,400

Required a. Assume that Chou uses the first-in, first-out method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31, 2018, for product A. b. Assume that Chou uses the last-in, first-out method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31, 2018, for product A. c. Assume that Chou uses the weighted-average cost method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31, 2018, for product A. Do not round until your final answers. Round to the nearest dollar.

a.	First-In, First-Out
	Ending Inventory	Answer Correct Mark 1.00 out of 1.00
	Cost of goods Sold	Answer Correct Mark 1.00 out of 1.00
b.	Last-In, First-Out
	Ending Inventory	Answer Incorrect Mark 0.00 out of 1.00
	Cost of Goods Sold	Answer Incorrect Mark 0.00 out of 1.00
c.	Weighted Average
	Ending Inventory	Answer Incorrect Mark 0.00 out of 1.00
	Cost of Goods Sold	Answer Incorrect Mark 0.00 out of 1.00