Armed Forces Surplus began May 2018 with 100 stoves that cost $10

each.

During the month, the company made the following purchases at cost

100 stoves that cost $10 each. During the month, the company made the following purchases at cost:

The company sold 320 stoves, and at May 31, the ending inventory consisted of 60 stoves. The sales price of each

stove was $50.

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.

May 6 $ 120 stoves @ 130 stoves @ 30 stoves @ $18 = $25 = $27 = 2,160 3,250 810 Requirement 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. Number of units Average cost Cost of goods sold Ending inventory 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 Armed Forces Surplus income statement for May. Report gross profit. Operating expenses totaled $4,500. The company uses average costing for inventory. The income tax rate is 40%