Problem 6 6A You have the following information for Bridgeport Corp Bridgeport Corp uses the periodic method of accounting for its inventory transactions Bridgeport Corp only carries one brand and size of diamondsall are identical Each batch of diamonds purchased is carefully coded and marked with its purchase cost March 1 Beginning inventory 138 diamonds at a cost of $284 per diamond March 3 Purchased 192 diamonds at a cost of $382 each March 5 Sold 172 diamonds for $541 each March 10 Purchased 352 diamonds at a cost of $384 each March 25 Sold 416 diamonds for $591 each Assume that Bridgeport Corp uses the specific identification cost flow method (1) Demonstrate how Bridgeport Corp could maximize its gross profit for the month by specifically selecting which diamonds to sell on March 5 and March 25 To maximize gross profit, Bridgeport Corp should sell the diamonds with the select an option lowesthighest cost (2) Demonstrate how Bridgeport Corp could minimize its gross profit for the month by selecting which diamonds to sell on March 5 and March 25 To minimize gross profit, Bridgeport Corp should sell the diamonds with the select an option lowesthighest cost Assume that Bridgeport Corp 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 Bridgeport Corp 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

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Problem 6-6A You have the following information for Bridgeport Corp.. Bridgeport Corp. uses the periodic method of accounting for its inventory transactions. Bridgeport Corp. only

Problem 6-6A

You have the following information for Bridgeport Corp.. Bridgeport Corp. uses the periodic method of accounting for its inventory transactions. Bridgeport Corp. only carries one brand and size of diamondsall are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost.

March 1		Beginning inventory 138 diamonds at a cost of $284 per diamond.
March 3		Purchased 192 diamonds at a cost of $382 each.
March 5		Sold 172 diamonds for $541 each.
March 10		Purchased 352 diamonds at a cost of $384 each.
March 25		Sold 416 diamonds for $591 each.

Assume that Bridgeport Corp. uses the specific identification cost flow method.

(1)		Demonstrate how Bridgeport Corp. could maximize its gross profit for the month by specifically selecting which diamonds to sell on March 5 and March 25.

		To maximize gross profit, Bridgeport Corp. should sell the diamonds with the select an option lowesthighest cost.

(2)		Demonstrate how Bridgeport Corp. could minimize its gross profit for the month by selecting which diamonds to sell on March 5 and March 25.

		To minimize gross profit, Bridgeport Corp. should sell the diamonds with the select an option lowesthighest cost.

Assume that Bridgeport Corp. 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 Bridgeport Corp. uses the LIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would the company report under this cost flow assumption?