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Requirements 1. Determine the amounts that MusicWorld should report for cost of goods sold and ending inventory two ways: a. FIFO b. LIFO?????????????????????? 2. MusicWorlduses

Requirements

1.

Determine the amounts that

MusicWorld

should report for cost of goods sold and ending inventory two ways:

a. FIFO

b. LIFO??????????????????????

2.

MusicWorlduses the FIFO method. Prepare

MusicWorld's income statement for the month ended

June 30, 2012 reporting gross profit. Operating expenses totaled

$ 330, and the income tax rate was

35%.

image text in transcribed Date Item Qty Unit cost Sale Price Jun 1 Balance . . . . . . . . . . . . . . . . . 14 $38 Jun 2 Purchase . . . . . . . . . . . . . . . . 5 74 Jun 7 Sale . . . . . . . . . . . . . . . . . . . . 7 $ 102 Jun 13 Sale . . . . . . . . . . . . . . . . . . . . 5 100 Requirements 1 Determine the amounts that . MusicWorld should report for cost of goods sold and ending inventory two ways: a. FIFO b. LIFO 2 MusicWorlduses the FIFO method. Prepare . MusicWorld's income statement for the month ended June 30, 2012 reporting gross profit. Operating expenses totaled $ 330, and the income tax rate was 35%

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