You have the following information for Ivanhoe Company. Ivanhoe Company uses the periodic method of accounting for its inventory transactions. Ivanhoe Company 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 154 diamonds at a cost of $329 per diamond.

March 3

Purchased 190 diamonds at a cost of $333 each.

March 5

Sold 179 diamonds for $599 each.

March 10

Purchased 305 diamonds at a cost of $360 each.

March 25

Sold 383 diamonds for $659 each.

(a)

Assume that Ivanhoe Company uses the specific identification cost flow method.

(1)		Demonstrate how Ivanhoe Company 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, Ivanhoe Company should sell the diamonds with the select an option lowesthighest cost.
(2)		Demonstrate how Ivanhoe Company could minimize its gross profit for the month by selecting which diamonds to sell on March 5 and March 25.
		To minimize gross profit, Ivanhoe Company should sell the diamonds with the select an option lowesthighest cost.

Cost of goods sold to maximize gross profit		$enter the cost of goods sold to maximize gross profit in dollars
Cost of goods sold to minimize gross profit