Specific identification method: Specific identification method is a method in which the company records each item of the inventory at its original cost. Under this method, when the goods are sold, the company can easily identify the original costs at which they were purchased for. This method helps in arriving at the accurate cost of goods sold, and ending inventory. The manner in which P Diamonds could maximize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

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Answer 1

Question

Chapter 6, Problem 6.6BP

(a)(1)

To determine

Specific identification method:

Specific identification method is a method in which the company records each item of the inventory at its original cost. Under this method, when the goods are sold, the company can easily identify the original costs at which they were purchased for. This method helps in arriving at the accurate cost of goods sold, and ending inventory.

The manner in which P Diamonds could maximize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(2)

To determine

The manner in which P Diamonds could minimize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(b)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using FIFO method.

(c)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using LIFO method.

(d)

To determine

To identify: The cost flow method which P Diamonds should select, and to explain it.

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Answer 2

Question

Chapter 6, Problem 6.6BP

(a)(1)

To determine

Specific identification method:

Specific identification method is a method in which the company records each item of the inventory at its original cost. Under this method, when the goods are sold, the company can easily identify the original costs at which they were purchased for. This method helps in arriving at the accurate cost of goods sold, and ending inventory.

The manner in which P Diamonds could maximize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(2)

To determine

The manner in which P Diamonds could minimize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(b)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using FIFO method.

(c)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using LIFO method.

(d)

To determine

To identify: The cost flow method which P Diamonds should select, and to explain it.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.6BP

(a)(1)

To determine

Specific identification method:

Specific identification method is a method in which the company records each item of the inventory at its original cost. Under this method, when the goods are sold, the company can easily identify the original costs at which they were purchased for. This method helps in arriving at the accurate cost of goods sold, and ending inventory.

The manner in which P Diamonds could maximize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(2)

To determine

The manner in which P Diamonds could minimize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(b)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using FIFO method.

(c)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using LIFO method.

(d)

To determine

To identify: The cost flow method which P Diamonds should select, and to explain it.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.6BP

(a)(1)

To determine

Specific identification method:

Specific identification method is a method in which the company records each item of the inventory at its original cost. Under this method, when the goods are sold, the company can easily identify the original costs at which they were purchased for. This method helps in arriving at the accurate cost of goods sold, and ending inventory.

The manner in which P Diamonds could maximize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(2)

To determine

The manner in which P Diamonds could minimize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(b)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using FIFO method.

(c)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using LIFO method.

(d)

To determine

To identify: The cost flow method which P Diamonds should select, and to explain it.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.6BP

(a)(1)

To determine

Specific identification method:

Specific identification method is a method in which the company records each item of the inventory at its original cost. Under this method, when the goods are sold, the company can easily identify the original costs at which they were purchased for. This method helps in arriving at the accurate cost of goods sold, and ending inventory.

The manner in which P Diamonds could maximize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(2)

To determine

The manner in which P Diamonds could minimize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

(b)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using FIFO method.

(c)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using LIFO method.

(d)

To determine

To identify: The cost flow method which P Diamonds should select, and to explain it.

Answer 6

Chapter 6, Problem 6.6BP

(a)(1)

To determine

Specific identification method:

Specific identification method is a method in which the company records each item of the inventory at its original cost. Under this method, when the goods are sold, the company can easily identify the original costs at which they were purchased for. This method helps in arriving at the accurate cost of goods sold, and ending inventory.

The manner in which P Diamonds could maximize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

Answer 7

Chapter 6, Problem 6.6BP

(a)(1)

To determine

Specific identification method:

Specific identification method is a method in which the company records each item of the inventory at its original cost. Under this method, when the goods are sold, the company can easily identify the original costs at which they were purchased for. This method helps in arriving at the accurate cost of goods sold, and ending inventory.

The manner in which P Diamonds could maximize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

Answer 8

(2)

To determine

The manner in which P Diamonds could minimize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

Answer 9

(2)

To determine

The manner in which P Diamonds could minimize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

Answer 10

(b)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using FIFO method.

Answer 11

(b)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using FIFO method.

Answer 12

(c)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using LIFO method.

Answer 13

(c)

To determine

To Calculate: The costs of goods sold, and gross profit of P Diamonds using LIFO method.

Answer 14

(d)

To determine

To identify: The cost flow method which P Diamonds should select, and to explain it.

Answer 15

(d)

To determine

To identify: The cost flow method which P Diamonds should select, and to explain it.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 6 - Prob. 1Q Ch. 6 - 2. An item must possess two characteristics to be...Ch. 6 - Prob. 3Q Ch. 6 - 4. (a) Rochelle Company ships merchandise to Jay...Ch. 6 - 5. Katz Hat Shop received a shipment of hats for...Ch. 6 - 6. Explain the difference between the terms FOB...Ch. 6 - 7. Kyle Ebert believes that the allocation of cost...Ch. 6 - 8. What is the major advantage and major...Ch. 6 - 9. “The selection of an inventory cost flow method...Ch. 6 - 10. Winch assumed inventory cost flow...

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The manner in which P Diamonds could minimize its gross profit for the month by specifically selecting the diamonds to be sold on March 5, and March 25.

To Calculate: The costs of goods sold, and gross profit of P Diamonds using FIFO method.

To Calculate: The costs of goods sold, and gross profit of P Diamonds using LIFO method.

To identify: The cost flow method which P Diamonds should select, and to explain it.

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Chapter 6 Solutions