Camp Surplus began May with 67 tents that cost $25 each. During the month, Camp Surplus made

Question:

Camp Surplus began May with 67 tents that cost $25 each. During the month, Camp Surplus made the following purchases at cost:

Camp Surplus sold 323 tents, and at May 31 the ending inventory consists of 49 tents. The sale price of each tent was $49.

Requirements
1. Determine the cost of goods sold and ending inventory amounts for May 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 the Camp Surplus income statement for May. Report gross profit. Operating expenses totaled $3,250. Camp Surplus uses average costing for inventory. The income tax rate is30%.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...