Question

# [The following information applies to the questions displayed below.] The following information pertains to Mason Company...

 [The following information applies to the questions displayed below.]
 The following information pertains to Mason Company for 2016:
 Beginning inventory 120 units @ \$ 32 Units purchased 366 units @ \$ 48
 Ending inventory consisted of 44 units. Mason sold 442 units at \$96 each. All purchases and sales were made with cash. Operating expenses amounted to \$3,450.
 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

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 answer and final answers to the nearest whole dollar amount.)

 Net Income FIFO LIFO Weighted average

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

 Unit Unit cost Total cost Beginning inventory 120 32 3840 Purchase 366 48 17568 Total 486 21408

Cost of goods sold unit = 486-44 = 442 Units

 FIFO LIFO Weighted average Cost of goods sold (120*32+322*48) = 19296 (366*48+76*32) = 20000 (21408/486*442) = 19470

a) Gross margin

 FIFO LIFO Weighted average Gross margin 42432-19296 = 23136 42432-20000 = 22432 42432-19470 = 22962

b) Net profit

 FIFO LIFO Weighted average Net income 23136-3450 = 19686 22432-3450 = 18982 22962-3450 = 19512

c) Ending inventory :

 FIFO LIFO Weighted average Ending inventory 21408-19296 = 2112 21408-20000 = 1408 21408-19470 = 1938