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You have the following information for Splish Brothers Inc. Splish Brothers Inc. uses the periodic method of accounting for its inventory transactions. Splish Brothers Inc. 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 March 3 March 5 Beginning inventory 157 diamonds at a cost of $317 per diamond. Purchased 219 diamonds at a cost of $364 each. Sold 166 diamonds for $607 each. Purchased 298 diamonds at a cost of $403 each. March 10 March 25 Sold 414 diamonds for $588 each. Assume that Splish Brothers Inc. 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 $ $ eTextbook and Media

You have the following information for Splish Brothers Inc. Splish Brothers Inc. uses the periodic method of accounting for its inventory transactions. Splish Brothers Inc. 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 March 3 March 5 Beginning inventory 157 diamonds at a cost of $317 per diamond. Purchased 219 diamonds at a cost of $364 each. Sold 166 diamonds for $607 each. Purchased 298 diamonds at a cost of $403 each. March 10 March 25 Sold 414 diamonds for $588 each. Assume that Splish Brothers Inc. 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 $ $ eTextbook and Media

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You have the following information for Splish Brothers Inc... Splish Brothers Inc. uses the periodic method of accounting for its inventory transactions. Splish Brothers Inc. 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 March 3 March 5 Beginning inventory 157 diamonds at a cost of $317 per diamond. Purchased 219 diamonds at a cost of $364 each. Sold 166 diamonds for $607 each. Purchased 298 diamonds at a cost of $403 each. March 10 March 25 Sold 414 diamonds for $588 each. Assume that Splish Brothers Inc. 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 $ $ eTextbook and Media
Transcribed Image Text:You have the following information for Splish Brothers Inc... Splish Brothers Inc. uses the periodic method of accounting for its inventory transactions. Splish Brothers Inc. 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 March 3 March 5 Beginning inventory 157 diamonds at a cost of $317 per diamond. Purchased 219 diamonds at a cost of $364 each. Sold 166 diamonds for $607 each. Purchased 298 diamonds at a cost of $403 each. March 10 March 25 Sold 414 diamonds for $588 each. Assume that Splish Brothers Inc. 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 $ $ eTextbook and Media
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