Question

MusicBiz specializes in sound equipment. Company records indicate the following data for a line of speakers: B. (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the amounts that MusicBiz should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. (MusicBiz uses a perpetual inventory system.) a. Using the FIFO method, the cost of goods sold is and the ending inventory is © Data Table Requirements - - X Date Sale Price Quantity 17 Unit Cost $ 53 Mar 1. Determine the amounts that MusicBiz should report for cost of goods sold and ending inventory two ways: (MusicBiz uses a perpetual inventory system.) a. FIFO b. LIFO Item 1 Balance ................ 2 Purchase......... 7 Sale 13 Sale د $ ه 104 97 2. MusicBiz uses the FIFO method. Prepare the company's income statement for the month ended March 31, 2018, reporting gross profit. Operating expenses totaled $280, and the income tax rate was 30%. ی 13 Sale .. . . . . . . . . . . . . .. Print Done Print Print Done Done Ente

Answer 1

Date	FIFO	QTY	Unit cost	QTY x Unit Cost	Unit Balance
Mar-01	Balance	17	53	17*53 = 901
Mar-02	Purchase	3	72	3*72 = 216
Mar-07	Sale	6	53	6*53 = 318	17+3-6 = 14
Mar-13	Sale	5	53	5*53 = 265	14-5 = 9
			FIFO COGS	318+265 = 583
Date	LIFO	QTY	Unit cost	Value	Unit Balance
Mar-01	Balance	17	53	17*53 = 901
Mar-02	Purchase	3	72	3*72 = 216
		3	72	3*72 = 216	17+3-3 = 17
		3	53	3*53 = 159	17-3= 14
Mar-07	Sale	6		375
Mar-13	Sale	5	53	5*53 = 265	14-5 = 9
			LIFO COGS	375+265 = 640
Income statement using FIFO Method
Sales (6*104)+(5*97)	1109.0
Less : Cogs	583.0
Gross profit	526.0
Less : Operating expense	280.0
PBT	246.0
Less :Tax @ 30%	73.8
Net Income	172.2