You have the following information for Ivanhoe Gems. Ivanhoe uses the periodic method of accounting for its inventory transactions. Ivanhoe 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 3 5 Beginning inventory 192 diamonds at a cost of $392 per diamond. Purchased 256 diamonds at a cost of $448 each. Sold 240 diamonds for $768 each. Purchased 432 diamonds at a cost of $492 each. Sold 504 diamonds for $832 each. 10 25 (a) Your answer is correct. Assume that Ivanhoe Gems uses the specific identification cost flow method. (1) How could Ivanhoe 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 should sell the diamonds with the lowest cost (2) How could Ivanhoe minimize its gross profit for the month by selecting which diamonds to sell on March 5 and March 25? To minimize gross profit, Ivanhoe should sell the diamonds with the highest cost. (c) Assume that Ivanhoe 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 $