Requirements 1. Determine the cost of goods sold and ending inventory amounts for July under (a) weighted-average cost and (b) FIFO cost assuming the perpetual system is used. Round weighted-average cost per unit to four decimal places, and round all other amounts to the nearest dollar. 2. Explain why cost of goods sold is highest under weighted-average cost. Be specific. 3. Prepare Firm-Navy Surplus's income statement for July 2017. Report gross profit. Operating expenses totalled $4,500. Firm-Navy Surplus uses the weighted-average costing for inventory. The income tax rate is 21%.