You have the following information for Blossom Company. Blossom Company uses the periodic method of accounting for its inventory transactions. Blossom Company 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. March 1 Beginning inventory 146 diamonds at a cost of $317 per diamond. March 3 Purchased 189 diamonds at a cost of $340 each. March 5 Sold 179 diamonds for $614 each. March 10 Purchased 324 diamonds at a cost of $399 each. March 25 Sold 408 diamonds for $681 each. (c) Assume that Blossom Company uses the LIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would the company report under this cost flow assumption? Cost of goods sold $ Gross profit $
You have the following information for Blossom Company. Blossom Company uses the periodic method of accounting for its inventory transactions. Blossom Company 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. March 1 Beginning inventory 146 diamonds at a cost of $317 per diamond. March 3 Purchased 189 diamonds at a cost of $340 each. March 5 Sold 179 diamonds for $614 each. March 10 Purchased 324 diamonds at a cost of $399 each. March 25 Sold 408 diamonds for $681 each. (c) Assume that Blossom Company uses the LIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would the company report under this cost flow assumption? Cost of goods sold $ Gross profit $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You have the following information for Blossom Company. Blossom Company uses the periodic method of accounting for its inventory
transactions. Blossom Company 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.
March 1
Beginning inventory 146 diamonds at a cost of $317 per diamond.
March 3
Purchased 189 diamonds at a cost of $340 each.
March 5
Sold 179 diamonds for $614 each.
March 10 Purchased 324 diamonds at a cost of $399 each.
March 25
Sold 408 diamonds for $681 each.
Transcribed Image Text:(c)
Assume that Blossom Company uses the LIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would
the company report under this cost flow assumption?
Cost of goods sold
$
Gross profit
$
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