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

Date	Item	Quantity	Unit Cost	Sale Price
Mar 1	Balance	18	$43
Mar 2	Purchase	6	57
Mar 7	Sale	7		$114
Mar 13	Sale	4		103

1.Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory two ways (MusicMagic uses a perpetual inventory system.)

a.	FIFO
b.	LIFO

2. MusicMagic uses the FIFO method. Prepare the company's income statement for the month ended March 31, 2021,

reporting gross profit. Operating expenses totaled $320, and the income tax rate was 35%.