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SWAT Team Surplus began October 2018 with 100 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 326 stoves, and at October 31, the ending inventory consisted of 54 stoves. The sales price of each stove was $55. Read the requirements. Requirement 1. Determine the cost of goods sold and ending inventory amounts for October 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 FIFO LIFO Cost of goods sold Ending inventory Requirement 2. Explain why cost of goods sold is highest under LIFO. Be specific. Under LIFO the cost of goods sold is the highest because costs are and LIFO assigns the to cost of goods sold. Requirement 3. Prepare SWAT Team 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 40%. (Check your spelling carefully and do not abbreviate. Round income tax expense to the nearest whole dollar.) SWAT Team Surplus Income Statement Month Ended October 31, 2018 Data Table X Requirements October 6 120 stoves @ $18 = $ 2.160 18 130 stoves a $25 3,250 Income before income taxes 26 30 stoves @ $27 810 1. Determine the cost of goods sold and ending inventory amounts for October 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 SWAT Team 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 40%. Net income Print Done Print Done Enter any number in the edit fields and then continue to the next

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