Question

HeyunculUl LIUI [The following information applies to the questions displayed below.) The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased 164 units @ $ 54 454 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 onsiderations.) (Round cost per unit to 3 decimal places and other intermediate answers and final swers to the nearest whole dollar amount.) > Answer is complete but not entirely correct. FIFO LIFO Veighted average Net Income $ 44,865 $ 43,083 $ 48,667

44395 is not the right answer either

Answer 1

Solution:

Net sales = 552 units * $162 = 89,424

Cost per unit : (8,856 + 36,774) / (164+ 454) = 73.835

COGS : 552 units * $73.835 = 40,756.89

Operating income = Net sales – COGS – Operating expense

= 89424 - 40,756.89 - 4,275

= 44,392.11