Exercise 5-4A (Algo) Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin LO 5-1

Skip to question

[The following information applies to the questions displayed below.]

The following information pertains to Mason Company for Year 2.

Beginning inventory	164 units @ $54
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.

Exercise 5-4A (Algo) Part a

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.)

Prev