Question

# 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 cost of \$436 each. 25 Sold 448 diamonds for \$741 each

Assume that Splish uses the FIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would Splish report under this cost flow assumption?

Cost of good Sold? \$

Gross profit ?\$

 FIFO: Periodic Inventory System - Units (a) Unit Price (b) Total Cost (a*b) Cost of goods sold from - Mar. 5 sales from Beginning inventory 171 \$350 \$59,850 Mar. 5 sales from Mar. 3 Purchases (212 - 171) 41 \$399 \$16,359 Mar. 25 sales from Mar. 3 Purchases (228 - 41) 187 \$399 \$74,613 Mar. 25 sales from Mar. 10 Purchases (448 - 187) 261 \$436 \$113,796 Cost of Goods Sold under FIFO 660 \$264,618 Sales Revenue - Mar. 5 212 \$684 \$145,008 Mar. 25 448 \$741 \$331,968 Total sales 660 \$476,976 Less: Cost of Goods Sold (\$264,618) Gross Profit under FIFO \$212,358

Please give a thumb up, if you get the help!!

#### Earn Coins

Coins can be redeemed for fabulous gifts.