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The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 120 units 330 units e $40 e $44 Ending inventory consisted of 70 units. Mason sold 380 units at $88 each. All purchases and sales were made with cash. Operating expenses amounted to $3100. 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.

The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 120 units 330 units e $40 e $44 Ending inventory consisted of 70 units. Mason sold 380 units at $88 each. All purchases and sales were made with cash. Operating expenses amounted to $3100. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 120 units 330 units Ending inventory consisted of 70 units. Mason sold 380 units at $88 each. All purchases and sales were made with cash. Operating expenses amounted to $3100. Required Required A Required B 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. Gross margin FIFO @ $40 e $44 Required C 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 2 decimal places and final answers to nearest whole dollar amount.) Check my work LIFO Weighted Average
Transcribed Image Text:The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 120 units 330 units Ending inventory consisted of 70 units. Mason sold 380 units at $88 each. All purchases and sales were made with cash. Operating expenses amounted to $3100. Required Required A Required B 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. Gross margin FIFO @ $40 e $44 Required C 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 2 decimal places and final answers to nearest whole dollar amount.) Check my work LIFO Weighted Average
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