MusicWorld net Ltd. 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 (Click the icon to view the data.) Requirements 1. Determine the amounts that MusicWorld should report for cost of goods sold and ending inventory in the following two ways: a. FIFO b. Weighted average cost 2. MusicWorld uses the FIFO method. Prepare MusicWorld's income statement for the month ended November 30, 2020, reporting gross profit Operating expenses totalled $290, and the income tax rate was 35% 3. MusicWorld is thinking of changing inventory costing methods from FIFO to weighted average cost. Are they allowed to make this change? Briefly explain Requirement 1. Determine the amounts that MusicWorld should report for cost of goods sold and ending inventory (a) Using the FIFO method, the ending inventory is $ and the cost of goods sold is $ Data Table Date Item Quantity Unit Cost Sale Price November 1 Balance 9 $ 85 8 Sale 4 $ 125 10 Purchase 13 125 30 Sale 8 170