The following information pertains to Baxter Company 2014
Beginning Inventory 60 units at $13
Units purchased 300 units at $20
Ending inventory consisted of 27 units, Baxter sold 333 units at $30 each. All purchases and sales were made with cash.
A...Compute the gross margin for Baxter Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
B...What is the dollar amount of difference in net income between using FIFO versus LIFO? (Ignore income tax considerations.)
C...Determine the cash flow operating activities using each of the three cost flow assumptions listed in part A. Ignore the effect of income taxes.