E6-32B. (Learning Objectives 2, 3: Determining ending inventory and cost of goods sold FIFO vs. LIFO) MusicNotes.net specializes in sound equipment. Because each inventory item is expensive, MusicNotes uses a perpetual inventory system. Company records indicate the following data for a line of speakers: Periodic Date Item Quantity Unit Cost Sale Price $38 68 Apr 1 Apr 2 Apr 7 Apr 13 Balance..... Purchase. Sale Sale 17 5 9 5 $106 92 Requirements 1. Determine the amounts that Music Notes should report for cost of goods sold and ending inventory two ways: a. FIFO b. LIFO C. Avg.est. 2. MusicNotes uses the FIFO method. Prepare MusicNotes' Income Statement for the month ended April 30, reporting gross profit. Operating expenses totaled $430, and the income tax rate was 30%