Reference no: EM132487792

Inventory Costing Methods-Periodic Method

Chou Sales Corporation uses the periodic inventory system. On January 1, 2018, Chou 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

CostUnits

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

Question 1. 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.

Question 2. 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.

Question 3. 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.