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(a) (1)
Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.
In First-in-First-Out method, the cost of initial purchased items are sold first. The value of the ending inventory consists the recent purchased items.
To Determine: The selection of diamonds for selling that should follow by J Gems to maximize the gross profit.
(2)
The selection of diamonds for selling that should follow by J Gems to minimize the gross profit.
(b)
To Calculate: The cost of goods sold and gross profit under FIFO method.
(c)
To Calculate: The cost of goods sold and gross profit under LIFO method.
(d)
To Explain: The cost flow method that should use by J Gems.
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Chapter 6 Solutions
FINANCIAL ACCOUNTING: TOOLS FOR BUSINES
- Wright Manufacturing incurred $40,000 of fixed costs and $60,000 of variable costs when 1,500 units of product were made and sold. If the company's volume doubles, the cost per unit will _.arrow_forwardThe overhead for the year was?arrow_forwardPlease provide solution this general accounting questionarrow_forward
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College