Question

You have the following information for Blossom Company. Blossom uses the periodic method of accounting for...

You have the following information for Blossom Company. Blossom uses the periodic method of accounting for its inventory transactions. Blossom 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 140 diamonds at a cost of $300 per diamond.
March 3 Purchased 190 diamonds at a cost of $340 each.
March 5 Sold 180 diamonds for $650 each.
March 10 Purchased 360 diamonds at a cost of $365 each.
March 25 Sold 385 diamonds for $700 each.

Assume that Blossom uses the FIFO 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

$enter a dollar amount

Gross profit

$enter a dollar amount

Assume that Blossom 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

$enter a dollar amount

Gross profit

$enter a dollar amount

Homework Answers

Answer #1
Units Unit cost Total
March 1 140 300 42000
March 3 190 340 64600
March 10 360 365 131400
Total 690 238000
Sales units 565 =180+385
Sales value 386500 =(180*650)+(385*700)
1
Cost of goods sold 192375 =(140*300)+(190*340)+(565-140-190)*365
Gross profit 194125 =386500-192375
2
Cost of goods sold 200500 =(360*365)+(190*340)+(565-360-190)*300
Gross profit 186000 =386500-200500
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You have the following information for Oriole Company. Oriole uses the periodic method of accounting for...
You have the following information for Oriole Company. Oriole uses the periodic method of accounting for its inventory transactions. Oriole 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 160 diamonds at a cost of $320 per diamond. March 3 Purchased 210 diamonds at a cost of $360 each. March 5 Sold 175 diamonds for $610 each. March 10 Purchased 335...
You have the following information for Sandhill Co.. Sandhill uses the periodic method of accounting for...
You have the following information for Sandhill Co.. Sandhill uses the periodic method of accounting for its inventory transactions. Sandhill 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 150 diamonds at a cost of $315 per diamond. March 3 Purchased 200 diamonds at a cost of $355 each. March 5 Sold 185 diamonds for $650 each. March 10 Purchased 330...
You have the following information for Sheffield Corp.. Sheffield uses the periodic method of accounting for...
You have the following information for Sheffield Corp.. Sheffield uses the periodic method of accounting for its inventory transactions. Sheffield 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 141 diamonds at a cost of $285 per diamond. March 3 Purchased 207 diamonds at a cost of $365 each. March 5 Sold 166 diamonds for $570 each. March 10 Purchased 328...
You have the following information for Blue Spruce Corp.. Blue Spruce Corp. uses the periodic method...
You have the following information for Blue Spruce Corp.. Blue Spruce Corp. uses the periodic method of accounting for its inventory transactions. Blue Spruce Corp. 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 165 diamonds at a cost of $284 per diamond. March 3 Purchased 180 diamonds at a cost of $317 each. March 5 Sold 175 diamonds for $585...
You have the following information for Splish Gems. Splish uses the periodic method of accounting for...
You have the following information for Splish Gems. Splish uses the periodic method of accounting for its inventory transactions. Splish 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 171 diamonds at a cost of $350 per diamond. 3 Purchased 228 diamonds at a cost of $399 each. 5 Sold 212 diamonds for $684 each. 10 Purchased 383 diamonds at a...
You have the following information for Splish Brothers Inc.. Splish Brothers Inc. uses the periodic method...
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 Beginning inventory 157 diamonds at a cost of $317 per diamond. March 3 Purchased 219 diamonds at a cost of $364 each. March 5 Sold 166 diamonds for...
You have the following information for Sheridan Gems. Sheridan uses the periodic method of accounting for...
You have the following information for Sheridan Gems. Sheridan uses the periodic method of accounting for its inventory transactions. Sheridan 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 120 diamonds at a cost of $248 per diamond. 3       Purchased 160 diamonds at a cost of $280 each. 5       Sold 144 diamonds for $480 each. 10       Purchased...
Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company uses a periodic inventory system...
Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company uses a periodic inventory system and the LIFO cost method for its grill inventory. Cast Iron's December 31, 2018, fiscal year-end inventory consisted of the following (listed in chronological order of acquisition): Units Unit Cost 8,200 $ 700 5,600 800 9,200 900 The replacement cost of the grills throughout 2019 was $1,000. Cast Iron sold 43,000 grills during 2019. The company's selling price is set at 200% of the...
You are provided with the following information for Sheffield Inc. for the month ended June 30,...
You are provided with the following information for Sheffield Inc. for the month ended June 30, 2020. Sheffield uses the periodic method for inventory. Date Description Quantity Unit Cost or Selling Price June 1 Beginning inventory 39 $39 June 4 Purchase 136 42 June 10 Sale 108 72 June 11 Sale return 13 72 June 18 Purchase 52 44 June 18 Purchase return 8 44 June 25 Sale 62 77 June 28 Purchase 26 49 Calculate ending inventory, cost of...
Exercise 8-10 a-c Inventory information for Part 311 of Windsor Corp. discloses the following information for...
Exercise 8-10 a-c Inventory information for Part 311 of Windsor Corp. discloses the following information for the month of June. June   1 Balance 295 units @ $12 June 10 Sold 196 units @ $30 11 Purchased 799 units @ $15 15 Sold 505 units @ $31 20 Purchased 498 units @ $16 27 Sold 296 units @ $33 Your answer is correct. Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1)...