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Camo Surplus began October 2018 with 100 stoves that cost $10 each. During the month, the company made the following purchases at cost: (Click the

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Camo Surplus began October 2018 with 100 stoves that cost $10 each. During the month, the company made the following purchases at cost: (Click the icon to view the purchases) The company sold 318 stoves, and at October 31, the ending inventory consisted of 62 stoves. The sales price of each stove was 549 Read the requirements LIFO Requirement 1. Determine the cost of goods sold and ending inventory amounts for October 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 Number of units Average cost FIFO Cost of goods sold 318 6042 Ending inventory 62 1178 Requirement 2. Explain why cost of goods sold is highest under LIFO Be specific Under LIFO the cost of goods sold is the highest because costs are rising and LIFO assigns the most recent units purchased to cost of goods sold Requirement 3. Prepare Carno Surplus income statement for October Report gross profit. Operating expenses totaled 55,000. The company uses average costing for inventory. The income tax rate is 40% (Round income tax expense to the nearest whole dollar) Camo Surplus Income Statement Month Ended October 31, 2018 Sales revenus Cost of goods sold Gross profit Operating expenses the innat elds and then continue to the next question Jold Camo Surplus began October 2018 with 100 stoves that cost $10 each - X (Click the icon to view the purchases) Data Table The company sold 318 stoves, and at October 31, the ending inventory Read the requirements 318 Cost of goods sold 6042 October 6 120 stoves 518 $ 2,160 62 Ending inventory 1178 18 130 stoves @ $25 = 3.250 Requirement 2. Explain why cost of goods sold is highest under LIFO 26 30 stoves @ $27 810 Under LIFO the cost of goods sold is the highest because costs are risi Print Done Requirement 3. Prepare Camo Surplus income statement for October average costing for inventory. The income tax rate is 40% (Roupas Camo Surplus Requirements Income Statement Month Ended October 31, 2018 1. Determine the cost of goods sold and ending inventory amounts for October Sales revenue under the average-cost, FIFO, and LIFO costing methods. Round the average Cost of goods sold cost per unit to two decimal places, and round all other amounts to the nearest dollar Gross profit 2. Explain why cost of goods sold is highest under LIFO Be specific Operating expenses 3. Prepare the Camo Surplus income statement for October Report gross profit Operating expenses totaled $5,000 The company uses average costing for Income before income taxes inventory. The income tax rate is 40% Income tax expense Net Income Print Done Choose from any list or enter any number in the input nelds and then continue to the next question Treating a capital expenditure as an immediate expense: O A. overstates assets and stockholders' equity in the year of the error. O B. understates assets and stockholders' equity in the year of the error. C. understates assets and overstates stockholders' equity in the year of the error. OD. overstates assets and understates stockholders' equity in the year of the error

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