Please i need help on this question, solve accordly and answers in table form ju
ID: 2339433 • Letter: P
Question
Please i need help on this question, solve accordly and answers in table form just as in question. thank you.
Required information [The following information applies to the questions displayed below. The following information pertains to Mason Company for 2018: Beginning inventory Units purchased 140 units $40 290 units$45 Ending inventory consisted of 60 units. Mason sold 370 units at $90 each. All purchases and sales were made with cash. Operating expenses amounted to $4100. 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 2 decimal places and final answers to nearest whole dollar amount.) FIFO | LIFO |Weighted Average Gross marginExplanation / Answer
Sales = 370 units * $90 per unit = $33,300
Under the FIFO method of inventory valuation, ending inventory consists of the recent purchases and the Cost of goods sold consists of the begining inventory and the earliest purchases.
Under the FIFO method, 370 units sold consists of 140 units from beginning inventory and 230 units from the units purchased
Cost of goods sold = (140 units*$40 per unit) + (230 units*$45 per unit)
= $5,600 + $10,350
= $15,950
Under the LIFO method of inventory valuation, ending inventory consists of beginning inventory and the earliest purchses. Cost of goods sold consists of the recent purchases.
Under the LIFO method, 370 units sold consists of 80 units from beginning inventory and 290 units from the units purchased
Cost of goods sold = (80 units*$40 per unit) + (290 units*$45 per unit)
= $3,200 + $13,050
= $16,250
Total number of units available for sale = 140 + 290 = 430
Cost of units available for sale = (140units*$40 per unit) + (290 units*$45 per unit)
= $5,600 + $13,050
= $18,650
Weighted average unit cost = Cost of units available for sale / Total number of units available for sale
= $18,650 / 430
= $43.37
Cost of goods sold = 370 units * $43.37 per unit = $16,047
Gross margin = Sales - Cost of goods sold
FIFO LIFO Weighted average Gross margin $17,350 ($33,300-$15,950) $17,050 ($33,300-$16,250) $17,253 ($33,300-$16,047)