Ruchi please see the attachment hon

Same as usual 3 questions...

P6-63A. (Learning Objective 2: Apply various inventory costing methods) Assume a Watercrest Sports outlet store began October 2016 with 47 pairs of running shoes that cost the store $38 each. The sale price of these shoes was $67. During October, the store completed these inventory transactions: Units Unit Cost Sale 19 $38 9 13 22 Purchase Sale Sale 83 28 34 40 38 40 18 29 Sale Purchase 10 24 40 42 Oct 2 Unit Sale Price $ 6 7 6 67 68 8 Requirements I. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer. 2. Determine the store's cost of goods sold for October. Also compute gross profit for October. 3. What is the cost of the store's October 31 inventory of running shoes? P6-64A. (Learning Objective 2: Compare inventory by three methods) Armed Forces Surplus began March 2016 with 80 tents that cost $15 each. During the month, Armed Forces Surplus made the following purchases at cost: March 6 8 26 100 tents @ $20= $2,000 120 tents @ $25 =$3,000 50 cents @ $30 =$1,500 Armed Forces Surplus sold 296 tents, and at March 3 t, the ending inventory consists of 54 tents. The sale price of each tent was $45. Requirements l. 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 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 March. Report gross profit. Operating expenses totaled $5,000. Armed Forces Surplus uses average costing for inventory. The income tax rate is 35%. P P6-73B. (Learning Objective 2: Compare inventory by three methods) Military Surplus began May 2016 with 80 stoves that cost $20 each, During the month, Military Surpli made the following purchases at cost: March 6 8 26 100 Stoves @ $20= $2,000 120 Stoves @ $25 =$3,000 50 Stoves @ $30 =$1,500 Military Surplus sold 286 stoves, and at May 31, the ending inventory consists of 64 stoves. The sale price of each stove was $45. Requirements 1. Determine the cost of goods sold and ending inventory amounts for May under the average cost, FIFO cost, and LIFO cost. Round the average cost per unit 10 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 Military Surplus's income statement for May. Report gross profit. Operating expenses totaled $3,500. Military Surplus uses average costing for inventory. The income tax rate is 30%.