a. Gross Margin
Methods | Gross Margin |
FIFO | $33,936 |
LIFO | $32,802 |
Weighted average | $33,645 |
Working Notes:
(i) Sales = 492 Units * $126 = $61,992
(ii) Cost of goods sold
FIFO = (140 Units * $42) + (492 Units - 140 Units) * $63 = $28,056
LIFO = (406 Units * $63) + (492 Units - 406 Units) $42 = $29,190
Weighted average cost per unit = (140 Units * $42) + (406 Units * $63) / 546 Units = $57.615 per unit
= 492 Units * $57.615
= $28,347
(iii) Gross Margin
Gross Margin = Sales - Cost of goods sold |
FIFO = $61,992 - $28,056 = $33,936
LIFO = $61,992 - $29,190 = $32,802
Weighted Average = $61,992 - $28,347 = $33,645
b. Amount of Ending Inventory
Methods | Ending Inventory |
FIFO | $3,402 |
LIFO | $2,268 |
Weighted average | $31,112 |
Working Notes:
Ending Inventory = Goods available for sale - Goods sold
Goods available for sale = 140 Units + 406 Units = 546 Units
Ending Inventory = 546 Units - 492 Units = 54 Units
Amount of Ending Inventory
FIFO = 54 Units * $63 = $3,402
LIFO = 54 Units * $42 = $2,268
Weighted Average = 54 Units * $57.615 = $31,112
All the best...
0 Required information (The following information applies to the questions displayed below.) The following information pertains...
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 420 units @ @ $40 $43 Ending inventory consisted of 100 units. Mason sold 470 units at $86 each. All purchases and sales were made with cash. Operating expenses amounted to $3300. Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted...
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 Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted...
Required information [The following information applies to the questions displayed below. The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 148 units 422 units $ 46 $ 69 Ending inventory consisted of 58 units. Mason sold 512 units at $138 each All purchases and sales were made with cash. Operating expenses amounted to $3,975. c. Compute the amount of ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to...
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...
Required information [The following information applies to the questions displayed below.) The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 132 units @ $ 38 390 units e $ 57 Ending inventory consisted of 50 units. Mason sold 472 units at $114 each. All purchases and sales were made with cash. Operating expenses amounted to $3,675. Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO (2) LIFO,...
Required information [The following information applies to the questions displayed below.] The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 124 units @ $ 34 374 units @ $ 51 Ending inventory consisted of 46 units. Mason sold 452 units at $102 each. All purchases and sales were made with cash. Operating expenses amounted to $3,525. b. What is the amount of net income using FIFO, LIFO, and weighted average? (Ignore income tax considerations.) (Round...
The following information applies to the questions displayed below. The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 124 units @ $ 34 374 units @ $ 51 Ending inventory consisted of 46 units. Mason sold 452 units at $102 each. All purchases and sales were made with cash. Operating expenses amounted to $3,525. c. Compute the amount of ending inventory using (1) FIFO.(2) LIFO, and (3) weighted average. (Round cost per unit to 3...
[The following information applies to the questions displayed below.] The following information pertains to Mason Company for Year 2: 164 units $54 Beginning inventory Units purchased 454 units $ 81 Ending inventory consisted of 66 units. Mason sold 552 units at $162 each. All purchases and sales were made with cash. Operating expenses amounted to $4,275 What is the amount of net income using FIFO, LIFO, and weighted average? (Ignore income tax nsiderations.) (Round cost per unit to 3 decimal...
[The following information applies to the questions displayed below.] The following information pertains to Mason Company for Year 2: Beginning inventory 152 units @ $ 48 Units purchased 430 units @ $ 72 Ending inventory consisted of 60 units. Mason sold 522 units at $144 each. All purchases and sales were made with cash. Operating expenses amounted to $4,050. Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3)...
Required information [The following information applies to the questions displayed below.) The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 164 units @ $ 54 454 units @ $ 81 Ending inventory consisted of 66 units. Mason sold 552 units at $162 Operating expenses amounted to $4,275. Required a. Compute the gross margin for Mason Company using the following cost fl average. (Round cost per unit to 3 decimal places and final answers to the...