Q. Assume that Metlock, 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?

COGS:

Gross Profit:

Q. Assume that Metlock, 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?

COGS:

Gross Profit:

You have the following information for Metlock, Inc.. Metlock, Inc. uses the periodic method of accounting for its inventory transactions. Metlock, Inc. 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 142 diamonds at a cost of $340 per diamond. March 3 Purchased 196 diamonds at a cost of $374 each. March 5 Sold 173 diamonds for $647 each March 10 Purchased 341 diamonds at a cost of $376 each. March 25 Sold 373 diamonds for $626 each