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 March 31, 2016, reporting gross profit. Operating expenses totaled $330, and the income tax rate was 35%.

Transcribed Image Text:

Date Item Quantity Unit Cost Sale Price $46 68 Mar 1 Balance 2 Pu 7Sale.. $91 91