July 6 $ 1,800 18 90 stoves @ $20 100 stoves @ $25 30 stoves @ $30 2,500 26 900 Army - Navy Surplus began July 2018 with 80 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 247 stoves, and at July 31, the ending inventory consisted of 53 stoves. The sales price of each stove was $53. Read the equirements Requirement 1. Determine the cost of goods sold and ending inventory amounts for July 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 LIFO Cost of goods sold Ending inventory 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 and LIFO assigns the to cost of goods sold. Requirement 3. Prepare Army - Navy Surplus' income statement for July. Report gross profit. Operating expenses totaled $5,000. The company uses average costing for inventory. The income tax rate is 30%. (Round income tax expense to the nearest whole dollar.) Army-Navy Surplus Income Statement Month Ended July 31, 2018 Net income