You have the following information for Prospector Gems. Prospector uses the peri

Question

You have the following information for Prospector Gems. Prospector uses the periodic method of accounting for its inventory transactions. Prospector only carries one brand and size of diamonds You have the following information for Prospector Gems. Prospector uses the periodic method of accounting for its inventory transactions. Prospector only carries one brand and size of diamonds You have the following information for Prospector Gems. Prospector uses the periodic method of accounting for its inventory transactions. Prospector only carries one brand and size of diamonds You have the following information for Prospector Gems. Prospector uses the periodic method of accounting for its inventory transactions. Prospector only carries one brand and size of diamonds You have the following information for Prospector Gems. Prospector uses the periodic method of accounting for its inventory transactions. Prospector only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. Assume that Prospector Gems uses the specific identification cost flow method. Assume that Prospector uses the FIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would Prospector report under this cost flow assumption? Assume that Prospector uses the LIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would the company report under this cost flow assumption?

Explanation / Answer

a)(1)highest

(2)lowest

b)cost of goods sold $697174

gross profit $ 568957

c)cost of goods sold$722306

gross profit $543825

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.