E6-19A. (Learning Objective 2, 3: Determining ending inventory and cost of goods sold—

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

Requirements 1. Determine the amounts that MusicSheet should report for cost of goods sold and ending inventory in two ways:

a. FIFO

b. LIFO 2. MusicSheet uses the FIFO method. Prepare MusicSheet’s Income Statement for the month ended April 30, reporting gross profit. Operating expenses totaled $280, and the income tax rate was 32%.

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Date Item Quantity Unit Cost Sale Price Apr 1 Balance. Apr 2 Purchase. Apr 7 Sale Apr 13 Sale 9698 $34 65 $122 122