Navy Surplus began July 2021 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 250 stoves, and at July 31, the ending inventory consisted of 50 stoves. The sales price of each stove was $52. Read the requirements. 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 LIFO Cost of goods sold FIFO 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 the Navy Surplus income statement for July. Report gross profit. Operating expenses totaled $3,250. The company uses average costing for inventory. The income tax rate is 40%. (Round income tax expense to the nearest whole dollar.) Navy Surplus Income Statement Month Ended July 31, 2021 Net income Data table July 6 90 stoves @ $20 $ 1,800 July 18 100 stoves @ July 26 30 stoves @ $25 = $30 = 2,500 900 Print Done Requirements 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. 2. Explain why cost of goods sold is highest under LIFO. Be specific. 3. Prepare the Navy Surplus income statement for July. Report gross profit. Operating expenses totaled $3,250. The company uses average costing for inventory. The income tax rate is 40%. Print Done