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Armed Forces Surplus began March 2016 with 80 tents that cost $15 each. During the month, Armed Forces Surplus made the following purchases at cost

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Armed Forces Surplus began March 2016 with 80 tents that cost $15 each. During the month, Armed Forces Surplus made the following purchases at cost Click the icon to view the purchases.) Armed Forces Surplus sold 296 tents, and at March 31, the ending inventory consists of 54 tents. The sale price of each tent was $45. Requirements 1. Determine the cost of goods sold and ending inventory amounts for March under the average cost, FIFO cost, and LIFO cost. Round average cost per unit to two decimal places, and round all other amounts to the nearest dollar 2. Explain why cost of goods sold is highest under LIFO. Be specific 3. Prepare the Armed Forces Surplus income statement for March Report gross profit Operating expenses totaled $5,000. Armed Forces Surplus uses average costing for inventory. The income tax rate is 35%. Requirement 1. Determine the cost of goods sold and ending inventory amounts for March under the average cost, FIFO cost, and LIFO cost. Round average cost per unit to two decimal places, and round all other amounts to the nearest dollar Number of units Average cost FIFO UF Cost of goods sold Ending inventory Requirement 2. Explain why cost of goods sold is highest under UFO Be specific Under LIFO the cost of goods sold is the highest because costs are and LIFO assigns the y to cost of goods sold Requirement 3. Prepare Armed Forces Surplus' income statement for March Report gross profit Operating expenses totaled $5,000 Choose from any list or enter any number in the input fields and then continue to the next question Armed Forces Surplus began March 2016 with 80 tents that cost $15 each. During the month, Armed Forces Surplus made the following purchases at cost (Click the icon to view the purchases.) Armed Forces Surplus sold 296 tents, and at March 31, the ending inventory consists of 54 tents. The sale price of each tent was $45. Requirements 1. Determine the cost of goods sold and ending inventory amounts for March under the average cost, FIFO cost, and LIFO cost. Round average cost per unit to two decimal places, and round all other amounts to the nearest dollar. 2. Explain why cost of goods sold is highest under LIFO. Be specific 3. Prepare the Armed Forces Surplus income statement for March. Report gross profit. Operating expenses totaled $5,000. Armed Forces Surplus uses average costing for inventory. The income tax rate is 35%. Income Statement Month Ended March 31, 2016 Data Table March 6 18 26 1 100 tents @ 20 tents @ 50 tents @ $20 - $25 = $30 = $ 2,000 3,000 1,500 Net income Print Done Choose from any list or enter any number in the input fields and then continue to the next

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