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 $250, 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.