E6-15A. (Learning Objective 2: Compare ending inventory and cost of goods sold-FIFO vs. LIFO) [no longer online] 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: Item Unit Cost Quantity 14 Date Sale Price Jun 1 Ralance Jun 2 Purchase Jun 7Sale Jun 13 Sake $4S 112 112 Requirements . 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, 2014, reporting gross profit. Operating expenses totaled $340, and the income tax rate was 40%