(Solution) - MusicWorld net specializes in sound equipment Because each inve -(2025 Original AI-Free Solution)

Paper Details

MusicWorld.net 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:

Requirements
1. Determine the amounts that MusicWorld should report for cost of goods sold and ending inventory two ways:
a. FIFO
b. LIFO
2. MusicWorld uses the FIFO method. Prepare MusicWorld?s income statement for the month ended June 30, 2012, reporting gross profit. Operating expenses totaled $340, and the income tax rate was40%.