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Exercise 5-19A (Algo) Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross...

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Accounting

Exercise 5-19A (Algo) Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin
LO 5-6
The following information pertains to Mason Company for Year 2:
Ending inventory consisted of 60 units. Mason sold 410 units at $144 each. All purchases and sales were made with cash. Operating
expenses amounted to $2900.
Required
a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) 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.
Required A
Required B
Required 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. (Enter cash outflows with a minus sign.)
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