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: E (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 September 30, 2020, reporting gross profit. Operating expenses totalled $280, and the income tax rate was 30%. 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 $ (b) Using the weighted average-cost method, the ending inventory is $ and the cost of goods sold is $. (Round interim calculations to two decimal places. Round final answers to the nearest dollar.) Requirement 2. MusicWorld uses the FIFO method. Prepare MusicWorld's income statement for the month ended September 30, 2020, reporting gross profit. Operating expenses totalled $280, and the income tax rate was 30% Begin with the heading, and then select the accounts and enter the amounts in the statement. (Round answers to the nearest dollar. Use parentheses or a minus sign for negative income.) x Data Table Date Item Quantity Unit Cost Sale Price September 1 Balance 9 $ 80 8 Sale 4 $ 125 10 Purchase 13 120 30 Sale 7 170 Begin with the heading, and then select the accounts and enter the amounts in the statement. (Round answers to the nearest dollar. Use parentheses or a minus sign for negative income.) Data Table Date Item Quantity Unit Cost Sale Price September 1 Balance 9 $ 80 8 Sale 4 $ 125 10 Purchase 13 120 30 Sale 7 170 Print Done Requirement 3. MusicWorld is thinking of changing inventory costing methods from FIFO to weighted average cost. Are they allowed to make this change? Briefly explain. IFRS and ASPE companies to change its accounting method, which results in the providing information