What will be the correct answer for weight average cost method for ending inventory and cost of goods sold? E5-17 (simliar to)MusicMagic.net Ltd. specializes in sound equipment. Because each inventory item is expensive, MusicMagic uses a perpetual inventory system. Company records indicate the following data for a line of speakers:E (Click the icon to view the data.)Requirements1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory in the following two ways:a. FIFOb. Weighted-average cost2. MusicMagic uses the FIFO method. Prepare MusicMagic's income statement for the month ended April 30, 2020, reporting gross profit. Operating expenses totalled $319, and the income tax rate was 35%.3. MusicMagic is thinking of changing inventory costing methods from FIFO to weighted-average cost. Are they allowed to make this change? Briefly explain.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 $ 1,050 and the cost of goods sold is $ 1,190.and the cost of goods sold is $(Round interim calculations to puo docimal placos Round final answore to the noarost dollarL(b) Using the weighted-average-cost method, the ending inventory is $Data TableDateItemQuantity Unit CostSale PriceApril1 Balance.11 $ 708 Sale....$ 125Enter your answer in the edit fields and then click Check Answer.10 Purchase.1410530 Sale.91654 partsremainingClear All5:29 PMP Type here to search^ e * D G 4) ENG2020-10-31Chpf914416ho11AAescrASUprt schomedebutendfindeletepgimprécr&5num lock6wnueRIP08

Weighted average Cost per unit=11-6×$70+14×$10511-6+14=$182019=$95.79

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Business

Accounting

What will be the correct answer for weight average cost method for ending inventory and cost of goods sold?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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