The following information pertains to Mason Company for Year 2: Beginning inventory .................................90 units @ $40 Units
Question:
The following information pertains to Mason Company for Year 2:
Beginning inventory .................................90 units @ $40
Units purchased .......................................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.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds