cise 5-4A (Algo) Effect of inventory cost flow (FIFO, LIFO, Ollowing information applies to the questions displayed below.] llowing information pertains to Mason Company for Year 2: nning inventory s purchased 124 units @ $34 374 units @ $51

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Required information
Exercise 5-4A (Algo) Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin LO
5-1
[The following information applies to the questions displayed below.]
The following information pertains to Mason Company for Year 2:
Beginning inventory
Units purchased
Ending inventory consisted of 46 units. Mason sold 452 units at $102 each. All purchases and sales were made with cash.
Operating expenses amounted to $3,525.
Exercise 5-4A (Algo) Part a
124 units @ $34
374 units @ $51
Required
a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted
average.
Note: Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.
FIFO
LIFO
Weighted average
Gross Margin
Transcribed Image Text:! Required information Exercise 5-4A (Algo) Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin LO 5-1 [The following information applies to the questions displayed below.] The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased Ending inventory consisted of 46 units. Mason sold 452 units at $102 each. All purchases and sales were made with cash. Operating expenses amounted to $3,525. Exercise 5-4A (Algo) Part a 124 units @ $34 374 units @ $51 Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. Note: Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount. FIFO LIFO Weighted average Gross Margin
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