Navy Seals Surplus began July 2021 with 70 stoves that cost $10 each. During the month, the company made the following (Cick the icon to view the purchases.) The company sold 235 stoves, and at July 31, the ending inventory consisted of 65 stoves. The sales price of each stove was $50. Read the requirements. Requirement 1. Determine the cost of goods sold and ending inventory amounts for July 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 Requirements 2 1. Determine the cost of goods sold and ending inventory amounts for July 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 Navy Seals Surplus income statement for July Report gross profit Operating expenses totaled $3,500 The company uses average costing for inventory. The income tax rate is 32% X urchases During the month, the company made the following purchases at cost Data table July 6 July 18 July 20 80 stoves@ $15- 100 stoves@ $20- 50 stoves@ $30- Print Done $ 1,200 2,000 1,500 - X our
Navy Seals Surplus began July 2021 with 70 stoves that cost $10 each. During the month, the company made the following (Cick the icon to view the purchases.) The company sold 235 stoves, and at July 31, the ending inventory consisted of 65 stoves. The sales price of each stove was $50. Read the requirements. Requirement 1. Determine the cost of goods sold and ending inventory amounts for July 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 Requirements 2 1. Determine the cost of goods sold and ending inventory amounts for July 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 Navy Seals Surplus income statement for July Report gross profit Operating expenses totaled $3,500 The company uses average costing for inventory. The income tax rate is 32% X urchases During the month, the company made the following purchases at cost Data table July 6 July 18 July 20 80 stoves@ $15- 100 stoves@ $20- 50 stoves@ $30- Print Done $ 1,200 2,000 1,500 - X our
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Navy Seals Surplus began July 2021 with 70 stoves that cost $10 each. During the month, the company made the following purchases at cost
(Click the icon to view the purchases.)
The company sold 235 stoves, and at July 31, the ending inventory consisted of 65 stoves. The sales price of each stove was $50.
Read the requirements.
Requirement 1. Determine the cost of goods sold and ending inventory amounts for July 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
Requirements
1. Determine the cost of goods sold and ending inventory amounts for July 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 Navy Seals Surplus income statement for July Report gross
profit Operating expenses totaled $3,500. The company uses average costing
for inventory. The income tax rate is 32%
Print
Done
X
During the month, the company made the following purchases at cost
Data table
July 6
July 18
July 26
80 stoves@ $15. $ 1,200
100 stoves@ $20-
2,000
50 stoves@ $30-
1,500
Print
Done
-
X
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