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

Requirements
1. Determine the amounts that MusicLife should report for cost of goods sold and ending inventory two ways:
a. FIFO
b. LIFO
2. MusicLife uses the FIFO method. Prepare MusicLife€™s income statement for the month ended April 30, 2010, reporting gross profit. Operating expenses totaled $340, and the income tax rate was30%.

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Date Item Quantity Unit Cost Sale Price Apr 1 Balanc16 Apr 2 Purchase Apr 7 Sae Apr 13 Sale. $39 $105 96