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

Requirements
1. Determine the amounts that MusicWorld should report for cost of goods sold and ending inventory two ways:
a. FIFO
b. LIFO
2. MusicWorld uses the FIFO method. Prepare MusicWorld€™s income statement for the month ended June 30, 2012, reporting gross profit. Operating expenses totaled $340, and the income tax rate was40%.

Transcribed Image Text:

Unit Cost Sale Price Date Item S42 69 Jun 1 Balance.. 14 Jun 2 Purchase. Jun 7 Sale Jun 13 Sale 4 7 $111