You have the following information for Wildhorse Gems. Wildhorse uses the periodic system of accounting for its inventory transactions. Wildhorse 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 31 March 5 March 10- March 25 Beginning inventory 150 diamonds at a cost of $320 per diamond. Purchased 200 diamonds at a cost of $360 each. Sold 180 diamonds for $630 each. Purchased 350 diamonds at a cost of $385 each. Sold 395 diamonds for $680 each.
You have the following information for Wildhorse Gems. Wildhorse uses the periodic system of accounting for its inventory transactions. Wildhorse 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 31 March 5 March 10- March 25 Beginning inventory 150 diamonds at a cost of $320 per diamond. Purchased 200 diamonds at a cost of $360 each. Sold 180 diamonds for $630 each. Purchased 350 diamonds at a cost of $385 each. Sold 395 diamonds for $680 each.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You have the following information for Wildhorse Gems. Wildhorse uses the periodic system of accounting for its inventory
transactions. Wildhorse 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 31
March 5:
March 10-
March 25
Beginning inventory 150 diamonds at a cost of $320 per diamond.
Purchased 200 diamonds at a cost of $360 each.
Sold 180 diamonds for $630 each.
Purchased 350 diamonds at a cost of $385 each.
Sold 395 diamonds for $680 each.
Transcribed Image Text:Assume that Wildhorse uses the FIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would
Wildhorse report under this cost flow assumption?
Cost of goods sold. $
Gross profit
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