Ending inventory consisted of 30 units. Boone sold 320 units at $40 each. All pu

Question

Ending inventory consisted of 30 units. Boone sold 320 units at $40 each. All purchases and sales were made with cash.

Compute the gross margin for Boone Company using the following cost flow assumptions. (Do not round intermediate calculations Omit the "$" sign in your response.)

What is the dollar amount of difference in net income between using FIFO versus LIFO? (Ignore income tax considerations.) (Omit the "$" sign in your response.)

Determine the net cash flow from operating activities, using each of the three cost flow assumptions. Ignore the effect of income taxes. (Omit the "$" sign in your response.)

If the company were subject to income tax, the amount of net cash flow from the operating activities would be same or different under three methods.

     (Click to select)DifferentSame

The following information pertains to Boone Company for 2009.

Explanation / Answer

1)FIFO

2)LIFO

3)weighted average method

Difference :FIFO =$9320

:LIFO =$9440

=$120

70×26=1820

250×30=7500

280×30=8400

40×26=1040

876

Receipts issue balance 1820 1820 8400 10220

70×26=1820

250×30=7500

• 900=30×30

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