Question 2: MusicNotes.net specializes in sound equipment. Because each inventory item is expensive, MusicNotes uses a perpetual inventory system. Company records indicate the following data for a line of speakers: Sale price Date April 1 April 2 April 7 April 13 Item Balance Purchase Sale Sale Quantity 17 5 9 5 Unit cost $ 38 $68 $ 106 $92 Requirements 1. Determine the amounts that MusicNotes should report for cost of goods sold and ending inventory two wa a. FIFO b. LIFO 2. MusicNotes uses the FIFO method. Prepare MusicNotes' Income Statement for the month ended April 30, reporting gross profit. Operating expenses totaled $430, and the income tax rate was 30%