Question 5 of 5

Question 5 of 5 View Policies Current Attempt in Progress You have the follmving information for Crane Diamonds. Crane Diamonds uses the periodic method of accounting for its inventory transactions. Crane 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 I March 3 March 5 March 10 March 25 Beginni ng inventory 120 diamonds at cost of 248 per diamond Purchased 160 diamonds at cost of 280 each. Sold 144 diamonds for 480 each. Purchased 280 diamonds at cost of 304 each. Sold 320 diamonds for 520 each. (a) Assume that Crane Diamonds uses the specific identification cost flow method. (1) Demonstrate how Crane Diamonds cculd maximize its gross profit for the month by specifically selecting which diamonds to To maximize gross profit, Crane Diamonds should sell the diamonds with the Demonstrate how Crane Diamonds cculd minimize its gross profit for the month by selecting which diamonds to sell on March To minimize gross profit, Crane Diamonds should sell the diamonds with the (b) Assume that Crane Diamonds uses the FIFO cost flow assumption. Calculate cost of goads sold. How much gross profit would Crane Diamonds report under this cost tlow assumption? Cast of goods sold Gross profit (c) Assume that Crane Diamonds uses the average-cost cost assumption. Calculate cost of goods sold. How much gross profit would the camny report under this cast flow assu mption? (Round unit cost to 3 dinnl places, e.g. 15.125 arWfiMI arswe to O decirMI places, e.g. 125.) Cast of goods sold Gross profit eTextbook and Media