Army-Navy Surplus began March 2014 with 75 camping stoves that cost $16 each. During the month, Army-Navy Surplus made the following purchases at cost:

Army-Navy Surplus sold 318 stoves, and at March 31, the ending inventory consists of 53 stoves. Te sale price of each tent was $47.

1. Determine the cost-of-goods-sold and ending inventory amounts for March under the average cost, FIFO cost, and LIFO cost. Round 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 Army-Navy Surplus’s income statement for March. Report gross profit. Operating expenses totaled $2,755. Army-Navy Surplus uses average costing for inventory. The income tax rate is30%.

  • CreatedJuly 25, 2014
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