Requirement 3. Prepare Army - Navy Surplus income statement for October. Report gross profit Operating expenses totaled $3.000. The company uses average costing for inventory The Income tax rate is 30% (Round income tax expense to the nearest whole dolar) Army-Navy Surplus Income Statement Month Ended October 31, 2018 Sales revenue Cost of goods sold Gross prota Operating en DONGOS Income before income Income tax expo Norincome Chark se c st of i - X Data Table The stat the October 6 $ 1,800 90 stoves @ $20 120 stoves @ $24 18 2,880 26 30 stoves @ $28 = 840 Print Done Army - Navy Surplus began October 2018 with 80 stoves that cost $15 each. During the month, the company made the following purchases at cost It click the loon to view the purchases) The company sold 200 stoves, and at October 31, the ending invertory consisted of 40 stoves. The sale price of each stove was $46. Read errents Requirements. Determine the cost of goods sold and ending inventory amounts to October under the average-cost, PFO, and LIFO costing methods. Round the average cost per unit to two decimal places, and round all other amounts to the nearest dollar Number of units Average cost FIFO LIFO Cost of goods sold 20$ 5400 $ 5.100 5 5.820 Ending inventory 605 1,200 5 $ 900 Requirement 2. Explain why cost of goods sold is highest under LIFO Be specific Under LITO e cost of goods sold is the highest becaute couts are rising and LIFO assigns the most recent units purchased to cost of goods sold. 1,500