Compare specific identification, FIFO, and LIFO under periodic method; use cost flow assumption to influence earnings. You have the following information for Jewels Gems. Jewels uses the periodic method of accounting for its inventory transactions. Jewels 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. Beginning inventory 150 diamonds at a cost of $310 per diamond. March March Purchased 200 diamonds at a cost of $350 each. MarchSold 180 diamonds for $600 each. MarchPurchased 330 diamonds at a cost of $375 each. 10 March 25 Sold 390 diamonds for $650 each. Instructions (a) Assume that Jewels Gems uses the specific identification cost flow method. . 1.Demonstrate how jewels could maximize its gross profit for the month by specifically selecting which diamonds to sell on March 5 and March 25. . 2.Demonstrate how Jewels could minimize its gross profit for the month by selecting which diamonds to sell on March 5 and March 25 Gross profit: Maximum $162,500 Minimum $155.350 (b) Assume that Jewels uses the FIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would Jewels report under this cost fhow assumption? (c) Assume that Jewels uses the LIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would the company report under this cost flow assumption? (d) Which cost flow method should lewels Gems select? Explain