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Exercise 5 - 1 9 A ( Algo ) Effect of inventory cost flow ( FIFO , LIFO, and weighted average ) on gross margin
Exercise A Algo Effect of inventory cost flow FIFO LIFO, and weighted average on gross margin LO
The following information pertains to Mason Company for Year :
Beginning inventory
Units purchased
units@ $
units@ $
Ending inventory consisted of units. Mason sold units at $ each. All purchases and sales were made with cash. Operating expenses amounted to $
Required
a Compute the gross margin for Mason Company using the following cost flow assumptions:
FIFO
LIFO and
weighted average
b What is the amount of net income using FIFO, LIFO, and weighted average? Ignore income tax considerations.
c Determine the cash flow from operating activities, using each of the three cost flow assumptions listed in Requirement a Ignore the effect of income taxes.
Complete this question by entering your answers in the tabs below.
Compute the gross margin for Mason Company using the following cost flow assumptions:
FIFO
LIFO and
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