MusicMagic specializes in sound equipment. Company records indicate the following data for a line of speakers:(Click the icon to view the data.)Read the requirements.CoRequirement 1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. (MusicMagic uses a perpetual inventorysystem.)Start by determining the amounts that MusicMagic should report for cost of goods sold and ending inventory under a. FIFO.FIFO method cost of goods sold =FIFO method ending inventory =Data tableDateMar 1Mar 2Mar 7Mar 13ItemBalancePurchaseSaleSalePrintQuantity14576Unit Cost$Done4148Sale Price$109102X

Inventory includes all the items, merchandise, and raw materials that are used by the business…

MusicMagic specializes in sound equipment. Company records indicate the following data for a line of speakers: (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. (MusicMagic uses a perpetual inventor system.) Start by determining the amounts that MusicMagic should report for cost of goods sold and ending inventory under a. FIFO. FIFO method cost of goods sold = FIFO method ending inventory = Data table Date Mar 1 Mar 2 Mar 7 Mar 13 Item Balance Purchase Sale Sale Print Quantity 14 5 7 6 Unit Cost Sale Price $ 41 48 Done $ 109 102 - X

MusicMagic specializes in sound equipment. Company records indicate the following data for a line of speakers: (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. (MusicMagic uses a perpetual inventor system.) Start by determining the amounts that MusicMagic should report for cost of goods sold and ending inventory under a. FIFO. FIFO method cost of goods sold = FIFO method ending inventory = Data table Date Mar 1 Mar 2 Mar 7 Mar 13 Item Balance Purchase Sale Sale Print Quantity 14 5 7 6 Unit Cost Sale Price $ 41 48 Done $ 109 102 - X

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 5PA: Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to...

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Requirement 1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory. (a) Using the FIFO method, the ending inventory is $ and the cost of goods sold is $ (b) Using the weighted-average-cost method, the ending inventory is $ and the cost of goods sold is $ (Round interim calculations to two decimal places. Round final answers to the nearest dollar.) Requirement 2. MusicMagic uses the FIFO method. Prepare MusicMagic's income statement for the month ended November 30, 2017, reporting gross profit. Operating expenses totalled $260, and the income tax rate was 20%. Begin with the heading, and then select the accounts and enter the amounts in the statement. (Round answers to the nearest dollar. Use parentheses or a minus sign for negative income.) Data Table Date Item Quantity Unit cost Sale Price 1 Balance. 8 Sale. 10 Purchase. 30 Sale. November 12 90 9. 145 16 115 6. 175 Print Done