Question

The following information applies to the questions displayed below.] The following information pertains to Mason Company for 2016: Beginning inventory90 units Units purchased $40 310 units $45 Ending inventory consisted of 30 units. Mason sold 370 units at $90 each. All purchases and sales were made with cash. Operating expenses amounted to $4,100. value: 43.33 points b. What is the amount of net income using FIFO, LIFO, and weighted average? (Ignore income tax considerations.) (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.)

Answer 1

Requirement b

	Sales	Cost of Goods sold	Gross profit	Operating Expenses	Net Income
FIFO	$   33,300	$    16,200	$     17,100	$ 4,100	$   13,000
LIFO	$   33,300	$    16,350	$     16,950	$ 4,100	$   12,850
Weighted Average	$   33,300	$    16,234	$     17,066	$ 4,100	$   12,966

Requirement c

FIFO	$ 1,350
LIFO	$ 1,200
Weighted Average	$ 1,316

	Units	Cost per unit	value
Beginning Balance	90	$               40.00	$          3,600.00
Purchases
	310	$               45.00	$       13,950.00
	400		$       17,550.00

Average Cost of Inventory
Units	(A)	400
Total Cost	(B)	$      17,550.00
Average Cost	(C=B/A)	$            43.875

FIFO
Total Units Avalable for sale		400
Units Sold		370
Closing Stock in Units		30
Valuation
Ending Inventory	30	@	$                45.00	$         1,350.00
Value Of Ending Inventory				$         1,350.00
Cost of Goods sold	(39429-8830)			$       16,200.00
LIFO
Total Units Avalable for sale		400
Units Sold		370
Closing Stock in Units		30
Valuation
Ending Inventory	30	@	$               40.00	$         1,200.00
Value Of Ending Inventory				$         1,200.00
Cost of Goods sold	(39429-6710)			$       16,350.00
Weighted Average method
Total Units Avalable for sale		400
Units Sold		370
Closing Stock in Units		30
Valuation
Ending Inventory	30	@	$             43.875	$         1,316.25
Value Of Ending Inventory				$         1,316.25
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$       16,233.75