MusicPlace specializes in sound equipment. Because each inventory item is expen¬sive, MusicPlace uses a perpetual inventory system. Company records indicate the following data for a line of speakers:

Requirements
1. Determine the amounts that MusicPlace should report for cost of goods sold and ending inventory two ways:
a. FIFO
b. LIFO
2. MusicPlace uses the FIFO method. Prepare MusicPlace's income statement for the month ended June 30, 2016, reporting gross profit. Operating expenses totaled $280, and the income tax rate was 40%.

Transcribed Image Text:

Date Item Quantity Sale Price Jun Balance. 2 Pu 0 Unit Cost $42 73 15 Sale.. $118 13 Sale..