Problem 6-6A

You have the following information for Tamarisk, Inc.. Tamarisk, Inc. uses the periodic method of accounting for its inventory transactions. Tamarisk, Inc. 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 inventory137diamonds at a cost of $328per diamond.March 3

Purchased202diamonds at a cost of $382each.March 5

Sold190diamonds for $611each.March 10

Purchased354diamonds at a cost of $385each.March 25

Sold408diamonds for $679each.

Assume that Tamarisk, Inc. 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

$?

Gross profit ?

Assume that Tamarisk, Inc. 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 ?

$

Gross profit ?