[The following information applies to the questions displayed below.]
The following information pertains to Mason Company for 2016:
Beginning inventory
120
units
@
$
32
Units purchased
366
units
@
$
48
Ending inventory consisted of 44 units. Mason sold 442 units at $96 each. All purchases and sales were made with cash. Operating expenses amounted to $3,450.
Required
a.
Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.)
Gross Margin
FIFO
LIFO
Weighted average
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 other intermediate answer and final answers to the nearest whole dollar amount.)
Net Income
FIFO
LIFO
Weighted average
c.
Compute the amount of ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.)
Ending Inventory
FIFO
LIFO
Weighted average
| [The following information applies to the questions displayed below.] |
| The following information pertains to Mason Company for 2016: |
|
| ||||||
| Beginning inventory | 120 | units | @ | $ | 32 | |
| Units purchased | 366 | units | @ | $ | 48 | |
| Ending inventory consisted of 44 units. Mason sold 442 units at $96 each. All purchases and sales were made with cash. Operating expenses amounted to $3,450. |
| Required |
| a. | Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.) |
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| 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 other intermediate answer and final answers to the nearest whole dollar amount.) | ||||||||||
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| c. | Compute the amount of ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount.) | ||||||||||
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Related questions
Periodic Inventory Using FIFO, LIFO, and Weighted Average CostMethods
The units of an item available for sale during the year were asfollows:
| Jan. 1 | Inventory | 15 | units at $47 | $705 |
| July 7 | Purchase | 15 | units at $50 | 750 |
| Nov. 23 | Purchase | 15 | units at $52 | 780 |
| Available forsale | 45 | units | $2,235 | |
There are 22 units of the item in the physical inventory atDecember 31. The periodic inventory system is used. Determine theinventory cost using (a) the first-in, first-out (FIFO) method; (b)the last-in, first-out (LIFO) method; and (c) the weighted averagecost method (round per unit cost to two decimal places and yourfinal answer to the nearest whole dollar).
| a. | First-in, first-out (FIFO) | $ |
| b. | Last-in, first-out (LIFO) | $ |
| c. | Weighted average cost |
| The accounting records ofCarrolâs Lamp Shop reflected the following balances as of January1, 2014: |
| Cash | $ | 90,500 | ||
| Beginninginventory | 28,000 | (200 units @ $140) | ||
| Common stock | 40,000 | |||
| Retainedearnings | 78,500 | |||
| The following fivetransactions occurred in 2014: | |
| 1. | First purchase (cash) 120 units@ $150 |
| 2. | Second purchase (cash) 140 units@ $160 |
| 3. | Sales (all cash) 400 units @$320 |
| 4. | Paid $40,000 cash for salariesexpense. |
| 5. | Paid cash for income tax at therate of 25 percent of income before taxes. |
| Required | |
| a. | Compute the cost of goods sold and ending inventory, assuming(1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-averagecost flow. b. prepare the 2014 income statement underFIFO, LIFO, and weighted average. c. prepare the 2014 balance sheet under FIFO,LIFO, and weighted average d. prepare the 2014 statement of cash flowsunder FIFO, LIFO, and weighted average |
Required information
Problem 6-1A Perpetual: Alternative cost flows LO P1
[The following information applies to the questionsdisplayed below.]
Warnerwoods Company uses a perpetual inventory system. It enteredinto the following purchases and sales transactions forMarch.
Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
Mar. | 1 | Beginning inventory | 100 | units | @ $50.00 per unit | |||||||
Mar. | 5 | Purchase | 400 | units | @ $55.00 per unit | |||||||
Mar. | 9 | Sales | 420 | units | @ $85.00 per unit | |||||||
Mar. | 18 | Purchase | 120 | units | @ $60.00 per unit | |||||||
Mar. | 25 | Purchase | 200 | units | @ $62.00 per unit | |||||||
Mar. | 29 | Sales | 160 | units | @ $95.00 per unit | |||||||
Totals | 820 | units | 580 | units | ||||||||
3. Compute the cost assigned to endinginventory using (a) FIFO, (b) LIFO, (c)weighted average, and (d) specific identification. Forspecific identification, the March 9 sale consisted of 80 unitsfrom beginning inventory and 340 units from the March 5 purchase;the March 29 sale consisted of 40 units from the March 18 purchaseand 120 units from the March 25 purchase.
Complete this questions by entering your answers in thebelow tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using FIFO.
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Complete this questions by entering your answers in thebelow tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using LIFO.
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Perpetual FIFO
Weighted
Complete this questions by entering your answers in thebelow tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using weightedaverage. (Round your average cost per unit to 2 decimalplaces.)
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Perpetual LIFO
Compute the cost assigned to ending inventory using specificidentification. For specific identification, the March 9 saleconsisted of 80 units from beginning inventory and 340 units fromthe March 5 purchase; the March 29 sale consisted of 40 units fromthe March 18 purchase and 120 units from the March 25 purchase.
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Weighted Average
Sp
