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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...
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 $32. A summary of purchases during the current period follows.
UnitsUnit CostCostBeginning Inventory1,000$32$32,000Purchase #11,8003461,200Purchase #28003830,400Purchase #31,2004149,200
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 $Answer
Cost of goods sold $Answer
Use negative signs with answers, when appropriate.
Balance Sheet
TransactionCash Asset+Noncash
Assets
=Liabilities+Contributed
Capital
+Earned
Capital
Record FIFO cost of goods soldAnswer
Answer
Answer
Answer
Answer
Income Statement
Revenue
-
Expenses
=Net
Income
Answer
Answer
Answer
(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 $Answer
Cost of goods sold $Answer
- Attachment 1
- Attachment 2
