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

Army-Navy Surplus sold 318 tents, and at March 31, the ending inventory consists of 53 tents.
The sale price of each tent was $45.

Requirements
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 four 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€™ income statement for March. Report gross profit. Operating expenses totaled $2,750. Army-Navy Surplus uses average costing for inventory. The income tax rate is30%.

Transcribed Image Text:

Mar 3 95 tents @ $18 $1,710 17 165 tents @ $20 3,300 23 36 tents @ $21 S 756