MusicPalace specializes in sound equipment. Company records indicate the following data for a line ofspeakers.

Requirement $1$: FIFO method cost of goods sold and method ending inventory

Requirement $2$: LIFO and an incom

MusicPalace specializes in sound equipment. Company records indicate the following data for a line of speakers: $($Click the icon to view the data.$)$

Read the requirements.

Requirement $1.$ Determine the amounts that MusicPalace should report for cost of goods sold and ending inventory two ways: a$.$ FIFO and b$.$ LIFO. $($MusicPalace uses a perpetual inventory system.$)$

Start by determining the amounts that MusicPalace should report for cost of goods sold and ending inventory under

a$.$ FIFO.

FIFO method cost of goods sold $=$

$

$638$

FIFO method ending inventory $=$

$$,751$

Determinie the amounts that MusicPalace should report for cost of goods sold and ending inventory under b$.$ LIFO.

LIFO method cost of goods sold $=$

$ $693$

LIFO method ending inventory $=$

$$696$

Requirement $2.$ MusicPalace uses the FIFO method. Prepare the company's income statement for the month ended March $31,2021,$ reporting gross profit. Operating expenses totaled $$340,$ and the income tax rate was $35\%.($Round answers to the nearest dollar.$)$

MusicPalace

Income Statement

Month Ended March $31,2021$

Requirements

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

a$.$ FIFO

b$.$ LIFO

MusicPalace uses the FIFO method. Prepare the company's income statement for the month ended March $31,2021,$ reporting gross profit. Operating expenses totaled $$340,$ and the income tax rate was $35\%.$

Requirement $2.$ MusicPalace uses the FIFO method. Prepare the company's income statement for the month ended March $31,2021,$ reporting gross profit. Operating expenses totaled $$340,$ and the income tax rate was $35\%.($Round answers to the nearest dollar.$)$

MusicPalace

Income Statement

$\backslash$table$[[$Month Ended March $31,2021],[$Sales revenue,$1,111],[$Cost of goods sold,$638],[$Gross profit,$473],[$Operating expenses,${340}^{TT}$e statement