Army-Navy Surplus began March with 70 tents that cost $20 each. During the month, Amy-Navy Surplus made the following purchases at cost:
March4 100 tents @ $22 = $2,200
19 160 " @ 24 = 3,840
25 40" @ 25 = 1,000
Army-Navy Surplus sold 320 tents, and at March 31 the ending inventory consists of 50 tents. The sale price of each tent was $45.
Question:
Prepare Army-Navy Surplus's income statement for March. Report gross profit. Operating expenses totaled, $4,000. Army-Navy usesavg. costing for inventory. The income tax rate is 40%.
Additional Info:
The total i got for the avg cost before the Inc. Stmt. was $7,299, FIFO cost was $7,200, and LIFO cost was $7,400.