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You have the following information for Pharoah Gems. Pharoah uses the periodic mathod of accounting for its inventery transactions.

Pharoah only carries one brand and size of diamonds$-$all are identical. Each batch of diamonds purchased is carafully codad and

marlosd with its purchase cost.

March $1$ Baginning imentory $177$ diamonds at a cost of $$362$ per diamond.

$3$ Purchased $236$ diamonds at a cost of $$413$ each.

$5$ Sold $220$ diamonds for $$708$ each.

$10$ Purchased $397$ diamonds at a cost of $$452$ each.

$25$ Sold $464$ diamonds for $$767$ each.

$($a$)$

Your answer is correct.

Assume that Pharoah Gems uses the specific identification cost flow mathod.

$(1)$ How could Pharoah maximize its gross profit for the month by specifally salacting which diamonds to sell on March $5$

and March $25?$

To maximize gross profit, Pharoah should sall the diamonds with the

cost$.$

$(2)$

How could Pharoah minimize its gross profit for the month by selecting which diamonds to sell on March $5$ and March

$25?$

To minimize gross profit, Pharoah should sell the diamonds with the

cost$.$

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Attempts: $1$ of $3$ used

$($b$)$

Assume that Pharoah uses the FIFO cost flow assumption. Calculate coat of goods sold. How much gross profit would Pharoah

report under this cost flow assumption?

Cost of goods sold $

Groas profit

$