Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you have the following information for vaughn manu

You have the following information for Vaughn Manufacturing. Vaughn Manufacturing uses the periodic method of...

80.2K

Verified Solution

Question

Accounting

You have the following information for Vaughn Manufacturing. Vaughn Manufacturing uses the periodic method of accounting for its inventory transactions. Vaughn Manufacturing 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 138 diamonds at a cost of $309 per diamond. March 3 Purchased 213 diamonds at a cost of $335 each. March 5 Sold 185 diamonds for $556 each. March 10 Purchased 317 diamonds at a cost of $377 each. March 25 Sold 383 diamonds for $650 each.

Assume that Vaughn Manufacturing 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 Vaughn Manufacturing 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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students