Question: please help find the 3 wrong answers (red outlined boxes) You have the following information for Wildhorse Co.. Wildhorse uses the periodic method of accounting

You have the following information for Wildhorse Co.. Wildhorse uses the periodic method of accounting for its inventory transactions. Wildhorse 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 March 3 March 5 March 10 March 25 Beginning inventory 150 diamonds at a cost of $320 per diamond. Purchased 200 diamonds at a cost of $360 each. Sold 180 diamonds for $630 each. Purchased 350 diamonds at a cost of $385 each. Sold 395 diamonds for $680 each. Your answer is correct. Assume that Wildhorse uses the specific identification cost flow method. Demonstrate how Wildhorse 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, Wildhorse should sell the diamonds with the lowest cost. (2) Demonstrate how Wildhorse could minimize its gross profit for the month by selecting which diamonds to sell on March 5 and March 25. To minimize gross profit Wildhorse should sell the diamonds with the highest cost. Your answer is partially correct. Assume that Wildhorse 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 $ 206625 Gross profit $ 48125 e Textbook and Media List of Accounts X Your answer is incorrect. Assume that Wildhorse 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 $ 222750 Gross profit $ 159250
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
