Question

The following information pertains to King Company for 2013:
Beginning inventory ........ 80 units @ $30
Units purchased .......... 300 units @ $35
Ending inventory consisted of 30 units. King sold 350 units at $60 each. All purchases and sales were made with cash. Operating expenses amounted to $3,000.

Required
a. Compute the gross margin for King Company using the following cost flow assumptions:
(1) FIFO,
(2) LIFO,
(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.



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  • CreatedOctober 26, 2013
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