Required information Exercise 5-4A 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: 108 units @ $ 26 Beginning inventory Units purchased 342 units @ $ 39 Ending inventory consisted of 38 units. Mason sold 412 units at $78 each. All purchases and sales were made with cash. Operating expenses amounted to $3,225. ercise 5-4A Part a uired ompute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted age. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.) Gross Margin ghted average
Required information Exercise 5-4A 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: 108 units @ $ 26 Beginning inventory Units purchased 342 units @ $ 39 Ending inventory consisted of 38 units. Mason sold 412 units at $78 each. All purchases and sales were made with cash. Operating expenses amounted to $3,225. ercise 5-4A Part a uired ompute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted age. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.) Gross Margin ghted average
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I just need FIFO and LIFO explained im not even sure what computations to do
Transcribed Image Text:**Required Information**
**Exercise 5-4A: 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:** 108 units @ $26
- **Units Purchased:** 342 units @ $39
Ending inventory consisted of 38 units. Mason sold 412 units at $78 each. All purchases and sales were made with cash. Operating expenses amounted to $3,225.
---
**Exercise 5-4A Part a**
**Required:**
a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) Weighted Average.
*(Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.)*
**Table:**
| | Gross Margin |
|-----------------------|--------------|
| FIFO | |
| LIFO | |
| Weighted Average | |
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