Company managers need to know the company's gross profit percentage and rate of inventory turnover for 2018 under

1.FIFO.

2.LIFO.

2.Which method produces a higher gross profit percentage? A higher inventory turnover?

Air Force Surplus began March 2018 with 100 stoves that cost $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 comma 500. The company uses average costing for inventory. The income tax rate is 32%.

2017 2018 Ending inventory at: FIFO Cast 21,640 $ 31,060 LIFQ Cost 10,250 19,500 Cost of goods sold at: FIFO Cost 89,590 LIFQ Cast 101,150 Sales revenue 144,500 120 stoves@ $25 March $3,000 6 130 stoves@ $30 18 3,900 50 stoves @ $32 26 1,600 II II CO