Exercise A Algo Effect of inventory cost flow FIFO LIFO, and weighted average on gross margin
LO
The following information pertains to Mason Company for Year :
Ending inventory consisted of units. Mason sold units at $ each. All purchases and sales were made with cash. Operating
expenses amounted to $
Required
a Compute the gross margin for Mason Company using the following cost flow assumptions: FIFO, LIFO, and 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
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.
