Exercise $5-19$A $($Algo$)$ Effect of inventory cost flow $($FIFO$,$ LIFO, and weighted average$)$ on gross margin LO $5-6$

The following information pertains to Mason Company for Year $2$:

Beginning inventory

Units purchased

$100$ units@ $,$$$70$

$310$ units@ $,$$$74$

Ending inventory consisted of $70$ units. Mason sold $340$ units at $$148$ each. All purchases and sales were made with cash. Operating expenses amounted to $$3,000.$

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$.$ Determine the cash flow from operating activities, using each of the three cost flow assumptions listed in Requirement a$.$ Ignore the effect of income taxes.

Complete this question by entering your answers in the tabs below.

Compute the gross margin for Mason Company using the following cost flow assumptions:

$(1)$ FIFO

$(2)$ LIFO and