Question 1 – Periodic Inventory System Amna's Jewelry Store purchased three diamond and emerald bracelets during...

Question 1 – Periodic Inventory System
Amna's Jewelry Store purchased three diamond and emerald bracelets during March. The price of diamonds has fluctuated wildly during the month, causing the supplying firm to change the price of the bracelets it sells to Amna's Jewelry Store.
a. On March 5, the first bracelet cost $4,600.
b. On March 15, the second bracelet cost $5,100.
c. On March 20, the third bracelet cost $3,500.
Suppose Jayne's Jewelry Store sold two of these bracelets for $7,000 each.
Required:
1. Using FIFO, what is the cost of goods sold for these sales and what is the value of ending inventory? What is the gross profit?
2. Using LIFO, what is the cost of goods sold for these sales and what is the value of ending inventory? What is the gross profit?
3. Using weighted average cost, what is the cost of goods sold and what is the value of ending inventory? What is the gross profit?

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Expert Solution

ekkarill92 answered 1 year ago

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