Question

Required information The following information applies to the questions displayed below.] The following information pertains to Mason Company for 2018: Beginning inventory Units purchased 150 units 410 units @ @ $70 $73 Ending inventory consisted of 100 units. Mason sold 460 units at $146 each. All purchases and sales were made with cash. Operating expenses amounted to $2700. 5. What is the amount of net income using FIFO, LIFO, and weighte average? (Ignore income tax considerations.) FIFO LIFO FIFO LIFO Weighted Average Average Net income

Answer 1

Answort The amount dr.net V income FIFO, LIFO and weighted using ut FIFO closing stock value = beginning arsentery + units purchased - cost of sales. Where beginning inventory (13 = 10500 uni-l's purchased = 410*73 = 29930 veost o scales = 150x 70 + (460-150) x 73 - 10500 + 310 X 73 -10500 +22630 501 = 33,130 closing stock value = 10500 + 29930-- 33,130 = 7300

LIFO clasing stock valere = beginning inunarya no inventoryt wits purchased a cost of saly = (150x70) + (410x 3) – (420x93+ (460 -410)x = 10500 +29930-(87930 4 3500) = 10500709930 – 33,430 = 7000 urighted average 10500-729930 dosing stock value = (1 508-10) +(18x 73) - (460x (losoo 150+410 = 10500 + 24930 - (460 x 72.19) 10500 +29930 - 33007 = 7223 calculate net income i FIFO svet income = sales + cbacing stock value -pearchases – opening stock . operating expenses = (460x146)+7300 - 29930 –10500.-2700 = 677, 180 +43 00 – 299 30 -105.00–2400 = 31,330

LIFO Net Income - (460X146) + 7000- 29930 -10500-2700 = 31,030 cighted average : Net-income - (U60X146)+7223 - 29930 -- 10500 -2700 ::= 31,253. EIRO Live Wighted average. $ 31,030 1831,253. inct income $31,330_