Paulson’s specializes in sound equipment. Company records indicate the following data for a line of speakers:

Requirements

1. Determine the amounts that Paulson’s should report for cost of goods sold and ending inventory two ways:

a. FIFO

b. LIFO

2. Paulson’s uses the FIFO method. Prepare the company’s income statement for the month ended June 30, 2018, reporting gross profit. Operating expenses totaled $340, and the income tax rate was 35%.

Transcribed Image Text:

Unit Cost Quantity Sale Price Date Item Balance. . Purchase... $49 64 Jun 1 18 3 2 Sale ... 13 $115 103 Sale .