Question

[The following information applies to the questions displayed below.] The following information pertains to Mason Company for Year 2: 164 units $54 Beginning inventory Units purchased 454 units $ 81 Ending inventory consisted of 66 units. Mason sold 552 units at $162 each. All purchases and sales were made with cash. Operating expenses amounted to $4,275 What is the amount of net income using FIFO, LIFO, and weighted average? (Ignore income tax nsiderations.) (Round cost per unit to 3 decimal places and other intermediate answers and final nswers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Net Income FIFO LIFO $ 44,865 43,083 Veighted average 48,667

Answer 1

$44395 s correct answer

Computation of Net Income

Weighted Average Cost per Unit = Total Cost / No. of Unit

=( 164*54+454*81)/(164+454)= $73.83 / Unit

Sales :- ( 552 UnitX $162)= $89424

Less: Cost of Goods Sold ( 552 Unit X $73.83)= $40754

Less: Operatin Expense:       =    $4275

Net Income :- $44395