Question
Problem 5-1 5 points The following information pertains to Verlander Company for 2018. Beginning Inventory 450 units @ $21 per unit Units Purchased 1350 units
Problem 5-1 5 points The following information pertains to Verlander Company for 2018. Beginning Inventory 450 units @ $21 per unit Units Purchased 1350 units @ $12 per unit Ending inventory consisted of 90 units. Verlander sold 1,710 units at 50$ per unit All purchases and sales were made with cash. Beginning inventory purchased before year started. REQUIRED a. Compute the gross margin for Verlander Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. b. What is the dollar value of ending inventory for FIFO and Weighted Average? c. Determine the cash flow from operating activities in 2018, using each of the three cost flow assumptions listed in Requirement a . Ignore the effect of income taxes. Explain why these cash flows have no differences.
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