LO 5-1 Exercise 5-4A Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin The following information pertains to Mason Company for Year 2. Beginning inventory Units purchased 90 units @ $40 310 units @ $45 Ending inventory consisted of 30 units. Mason sold 370 units at $90 each. All purchases and sales were made with cash. Operating expenses amounted to $4,100. Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. b. What is the amount of net income using FIFO, LIFO, and weighted average? (Ignore income tax considerations.) c. Compute the amount of ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average.

LO 5-1 Exercise 5-4A Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin The following information pertains to Mason Company for Year 2. Beginning inventory Units purchased 90 units @ $40 310 units @ $45 Ending inventory consisted of 30 units. Mason sold 370 units at $90 each. All purchases and sales were made with cash. Operating expenses amounted to $4,100. Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. b. What is the amount of net income using FIFO, LIFO, and weighted average? (Ignore income tax considerations.) c. Compute the amount of ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average.

Name: LO 5-1Exercise 5-4A Effect of inventory cost flow (FIFO, LIFO, and we
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Description: LO 5-1Exercise 5-4A Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross marginThe following information pertains to Mason Company for Year 2.Beginning inventoryUnits purchased90 units @ $40310 units @ $45Ending inventory consis

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.5BE: Periodic inventory using FIFO, UFO, and weighted average cost methods The units of an item available...

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