es The following information pertains to Mason Company for Year 2: Beginning inventory 110 units @ 300 units @ $60 $64 Units purchased Ending inventory consisted of 80 units. Mason sold 330 units at $128 each. All purchases and sales were made with cash. Operating expenses amounted to $4,500. 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.
es The following information pertains to Mason Company for Year 2: Beginning inventory 110 units @ 300 units @ $60 $64 Units purchased Ending inventory consisted of 80 units. Mason sold 330 units at $128 each. All purchases and sales were made with cash. Operating expenses amounted to $4,500. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
am. 88.
Transcribed Image Text:ces
The following information pertains to Mason Company for Year 2:
Beginning inventory
110 units @
300 units @
$60
$64
Units purchased
Ending inventory consisted of 80 units. Mason sold 330 units at $128 each. All purchases and sales were made with cash. Operating
expenses amounted to $4,500.
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.
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