A 2501 Inventory Homework Problem Name: 1.Spice, Inc., began October with 100 shirts that cost $76 each. During October, the store made the following purchases at cost: Oct. 3 200@$81.00 $16,200 12 90@$82.007,380 24 240@$85,00 20.400 Spice sold 500 shirts and ended October with 130 shirts. The sale price of each shirt was $130. 1. Determine the cost of goods sold and ending inventory amounts by the weighted average, FIFO, and LIFO cost methods. Round average cost per unit to 3 decimal places, and round all other amounts to the nearest dollar. LIFO.. 2. Explain why cost of goods sold is highest under LIFO. 3. Prepare Spice's income statement for October. Report gross profit. Operating expenses totaled $10,000. Spice uses the LIFO method for inventory. The income tax rate is 40%