Question

Ocon 1 Para come out of 10.00 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 $20 A summary of purchases during the current period follows. During the period Chenaid 2.800 units UU Beginning inventory 1,000 $20 $20.000 11 .40 300 26 2.100 1.200 19 100 (a) Assume that Chen uses the first in first-out method. Compute both cost of od sold for the current period an the financial statement effects template to record cost of goods said for the period Ending inventory balance 55.600 Cost of goods sold 59 60 Usenestens with a when acordate o o d Compute both cost of good sold for the current period and the ending inventory balance to assume that Chen Ending inventory balance the st 115.200 Cost of goods sold 4000 X both cost of good sold for the current per c) Assume that Chen uses the average cost method Com Ending inventory balance $ 70,000 Cost of gods sold Which of these three inventory g o ds would you choose to U SOV most 1 was probably the Average cost 100 OLHO O verge Cost 10 00 3. Report the west amount of income for the period OF FOU wan t Average Cost 100 You have correctly selected 13 Maris for two

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Chen
Periodic LIFO
Date	Cost of Goods available for sale	Cost of Goods sold	Inventory Balance
No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
Opening	1,000.00	20.00	20,000.00		20.00	-	1,000.00	20.00	20,000.00
Purchase 1	1,800.00	22.00	39,600.00	800.00	22.00	17,600.00	1,000.00	22.00	22,000.00
Purchase 2	800.00	26.00	20,800.00	800.00	26.00	20,800.00	-	26.00	-
Purchase 3	1,200.00	29.00	34,800.00	1,200.00	29.00	34,800.00	-	29.00	-
Total	4,800.00		115,200.00	2,800.00		73,200.00	2,000.00		42,000.00
Cost of Goods sold is $ 73,200.
Cost of Ending Inventory is $ 42,000.
Periodic Average Costs
Date	No. of Units	Cost per unit	Amount
Opening	1,000.00	20.00	20,000.00
Purchase 1	1,800.00	22.00	39,600.00
Purchase 2	800.00	26.00	20,800.00
Purchase 3	1,200.00	29.00	34,800.00
Cost of Goods available for sale	4,800.00		115,200.00
Average cost		24.00	This is $ 115,200/4,800 units.
Units sold		2,800.00
Cost of Goods sold		$ 67,200.00
Cost of Ending Inventory		$ 48,000.00