1. Air Force Surplus began March 2018 with 100 stoves that cost of $15 each. During the month, the company made the following purchases at cost:

The company sold 345 stoves, and at March 31, the ending inventory consisted of 55 stoves. The sales price of each stove was $ 46

Determine the cost of goods sold and ending inventory amounts for March under the average-cost, FIFO, and LIFO costing methods. (Round the average cost per unit to two decimal places and round all other amounts to the nearest dollar.)

Explain why cost of goods sold is highest under LIFO. Be specific.

Prepare the Air Force Surplus income statement for March. Report gross profit. Operating expenses totaled $4,500. The company uses average costing for inventory. The income tax rate is 32%.

2. Determine the amounts that MusicPalace should report for cost of goods sold and ending inventory two ways: (MusicPalace uses a perpetual inventory system.)

a. FIFO

b. LIFO

MusicPalace uses the FIFO method. Prepare the company's income statement for the month ended March 31, 2018 reporting gross profit. Operating expenses totaled $250, and the income tax rate was 30%.

120 stoves@ $25 March $3,000 6 130 stoves@ $30 18 3,900 50 stoves @ $32 26 1,600 II II CO Date Item Quantity Unit Cost Sale Price 1 Balance 16 $ Mar 49 62 2 Purchase 5 7 Sale... 6 108 6 92 13 Sale