MusicBiz specializes in sound equipment. Company records indicate the following data for a line of speakers: Determine the amounts that MusicBiz should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO.

Date Item Quantity Unit Cost Sale Price

March 1 Balance ....... 16 ......... $ 59 ...........

2 Purchase 4 $ 65

7 Sale 6 $ 114

13 Sale 6 $ 94

a. Under the FIFO method, the cost of goods sold is $ ____ and the ending inventory is $ ____

b. Under the LIFO method, the cost of goods sold is $ _____ and the ending inventory is $____

Requirement 2. MusicBiz uses the FIFO method. Prepare the company's income statement for the month ended March 31, 2018, reporting gross profit. Operating expenses totaled $260, and the income tax rate was 40%.