MusicPlace.net specializes in sound equipment. Because each inventory item is expensive, 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 MusicPlaces income statement for the month ended April 30, 2010, reporting gross profit. Operating expenses totaled $260, and the income tax rate was35%.

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Date Item Sale Price Unit Cost $32 63 Apr 1 Balanc16 Apr 2 Purchase Apr 7 Sae Apr 13 Sale $112 112