This Question: 10 pts Time Remaining: 01:48:05 2 of 4 (0 complete) This Test: 55 Ground-Navy Surplus Ltd. began October 2020 with 74 tents that cost $19 each. During the month, Ground-Navy Surplus made the following purchases at cost (Click the icon to view the purchases.) Ground-Navy Surplus sold 336 tents (166 tents on October 22 and 170 tents on October 30), and at October 31 the ending inventory consists of 46 tents. The sale price of each tent was $55 Requirements Requirement 1. Determine the cost of goods sold and ending inventory amounts for October under (a) weighted average cost and (b) FIFO cost. Round weighted average cost per unit to four decimal places and round all other amounts to the neare (Assume a perpetual inventory control system is used.) Weighted Average Cost FIFO Ending inventory Cost of goods sold Requirement 2. Explain why cost of goods sold is highest under weighted average cost. Be specific. (Assume a perpetual inventory control system is used.) V and (b) weighted average cost includes the cost of the When costs are nising these latest inventory costs are the Weighted average cost results in the highest cost of goods sold because (a) the cost of tents is and that makes cost of goods sold the under weighted average cost. Requirement 3. Prepare Ground-Navy Surplus's income statement for October 2020. Report gross profit. Operating expenses totalled $4,000. Ground-Navy Surplus uses the weighted average costing for inventory. The income tax rate is 40% (Rour income tax expense to the nearest whole dollar.) Purchases Ground-Navy Surplus Ltd. Income Statement For the Month Ended October 31, 2020 October 4 103 tents @ $ 21 =S2 183 19 161 tents @ 23 3.703 24 44 tents @ 25 1056 Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 3. Prepare Ground-Navy Surplus's income statement for October 2020. Report gross profit. Operating expenses totalled $4,000. Ground-Navy Surplus uses the weighted average costing for inventory The income tax rate is 40% (R income tax expense to the nearest whole dollar.) Ground-Navy Surplus Ltd. Income Statement For the Month Ended October 31, 2020 Purchases October 4 103 tents @ S 21 = S 2.163 19 161 tents @ 23 3.703 25 44 tents @ 24 1.050 Choose from any list or enter any number in the input fields and then continue to the next question. Print Done