Requirements

Determine the cost of goods sold and ending inventory amounts for May 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 Fatigues Surplus income statement for May. Report gross profit.

Operating expenses totaled $$4,750.$ The company uses average costing for

inventory. The income tax rate is $32\%.$