MusicMagic.net specializes in sound equipment. Because each inventory item is expensive, MusicMagic uses a perpetual inventory system. Company records indicate the following data for a line of speakers:

Requirements
1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory two ways:
a. FIFO
b. LIFO
2. MusicMagic uses the FIFO method. Prepare MusicMagic€™s income statement for the month ended September 30, 2012, reporting gross profit. Operating expenses totaled $320, and the income tax rate was35%.

Transcribed Image Text:

Date Item Quantity Unit Cost $59 71 Sale Price Sep Balance17 Sep 3 Purchas. Sep 8 Sale Sep 12 Sae се $118 107 7