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.

Answer 1

Mason Company
FIFO
Sales (370 @ $90)				33,300
Cost of goods sold:
From beginning inv.	90	$40	3,600
From purchases (370-90)	280	$45	12,600	-16,200
Gross margin				17,100
LIFO
Sales (370 @ $90)				33,300
Cost of goods sold:
From beginning inv.	310	$45	13,950
From purchases (370-310)	60	$40	2,400	-16,350
Gross margin				16,950
Weighted Average
(90*40)+(310*45) = 17550 17550/(310+90) = 43.875
Sales (370 @ $90)				33,300
Cost of goods sold:
370*43.875				16234
Gross margin				17,066
2
Explanation:
	FIFO	LIFO	Weighted Avg.
Sales	33,300	33,300	33,300
Cost of goods Sold	-16,200	-16,350	16234
Gross margin	17,100	16,950	49,534
Operating expenses	-4100	-4100	-4100
Net income	13,000	12,850	45,434
3
Explanation:
Ending Inventory
FIFO	30@45	2,850
LIFO	30@40	1,900
Weighted average	30@ 43.875	1316