Required information Exercise 5-4A Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin LO 5-1 [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 @ $ 46 422 units @ $ 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. Exercise 5-4A 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.) Gross Margin FIFO LIFO Weighted average Required information Exercise 5-4A Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin LO 5-1 [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 @ $ 46 422 units @ $ 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. Exercise 5-4A Part b 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 answers and final answers to the nearest whole dollar amount.) Net Income FIFO LIFO Weighted average Required information Exercise 5-4A Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin LO 5-1 [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 @ $ 46 422 units @ $ 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. Exercise 5-4A Part c 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 the inventory of Parvin Company during Year 2: Jan. 1 Apr. 1 Oct. 1 Beginning Inventory Purchased Purchased 650 units @ 2,500 units @ 850 units @ $ 40 $ 45 $ 48 During Year 2, Parvin sold 3,500 units of inventory at $80 per unit and incurred $44,000 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $80,000, inventory of $26,000, common stock of $55,000, and retained earnings of $51,000. Exercise 5-6A Part b b. Prepare income statements using FIFO and LIFO. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 2 FIFO Cost of goods sold: Cost of goods sold LIFO Cost of goods sold: Cost of goods sold A substantial portion of inventory wned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance reporting and financial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered from the damaged records: Beginning inventory Purchases to date of storm Sales to date of storm $203,600 404,800 598,200 The value of undamaged inventory counted was $109,740. Historically, Prentiss's gross margin percentage has been approximately 20 percent of sales. Required Estimate the following: a. Gross margin in dollars. Gross margin b. Cost of goods sold in dollars. Cost of goods sold c. Ending inventory. Estimated ending inventory d. Amount of lost inventory. Inventory lost