The shareholders are very happy with Boston's steady increase in net income. However, auditors discover that the ending inventory for 2019 was understated by $5 million and that the ending inventory for 2020 was understated by $4 million the ending inventory at December 31, 2021 was correct.

The mounting of Boston Hohoho monto hare with Beyonconcordar 2018 20 by Amon Teng 2012 Boston Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2021, 2020, and 2019 2021 $ 2020 $ 2019 $ 44 41 38 11 10 12 26 24 22 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses 38 (9 35 (8) 32 (7) 29 27 25 15 14 13 3 3 3 S 12 15 10 Net income The stof Boston Home Store hota The there wand hay with the warranged 2000 1 Data Table 2021 2020 2019 $ 44 $ 41 S 38 A $ 7 S 6 8 26 24 22 Net sales revenue Cost of goods sold Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses 31 34 (9) 28 (7) (8) 25 23 21 19 18 3 17 3 3 S 16 $ 15 S 14 Print Done O BI 82F Sunny 6. 8 9 R T F G H K . Requirements 1. 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. 2. Explain why cost of goods sold is highest under LIFO. Be specific. 3. Prepare the Camo Surplus income statement for May. Report gross profit Operating expenses totaled $2,750. The company uses average costing for inventory. The income tax rate is 36%. Print Done Data Table 2021 2020 2019 $ 44 $ 41 $ $ 38 $ $ 7 $ 6 8 26 24 22 28 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income 34 (9) 31 (8) 25 23 21 17 19 3 18 3 lille 3 $ 16 15 14