Date Item Quantity Unit Cost Sale Price June 1 Balance 6 6 $ 95 8 Sale 3 $155 10 Purchase 11 100 30 Sale 5 5 160 Requirements 1. Determine the amounts that MusicBiz should report for cost of goods sold and ending inventory in the following two ways: a. FIFO b. Weighted average cost 2. Music Biz is thinking of changing inventory costing methods from FIFO to weighted-- average cost. Are they allowed to make this change? Briefly explain. 3. If minimizing taxes is important, which method do you recommend, given the numbers, and why? 4. MusicBiz has borrowed funds from the bank and they require the company to maintain a minimum Current Ratio of 2:1. Using the numbers, would a change from FIFO to Weighted Average have a positive or negative impact on our Current Ratio for the month of June? Briefly explain why. 5. Are there any other inventory costing methods that MusicBiz can consider