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Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin LO
The following information pertains to Mason Company for Year 2:
Beginning inventory 108 units @$26
Units purchased 342 units @$39
Ending inventory consisted of 38 units. Mason sold 412 units at $78 each. All purchases and sales were made with cash. Operating expenses amounted to $3,225.
Problem 1: Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
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