You have the following information for Windsor Diamonds. Windsor Diamonds uses the periodic method of accounting for its inventory transactions. Windsor 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 Beginning inventory 141 diamonds at a cost of €290 per diamond.

March 3 Purchased 188 diamonds at a cost of €329 each.

March 5 Sold 172 diamonds for €564 each.

March 10 Purchased 329 diamonds at a cost of €360 each.

March 25 Sold 376 diamonds for €611 each.

Assume that Windsor Diamonds uses the average-cost cost flow assumption. Calculate cost of goods sold. How much are the gross profit and cost of goods sold?

Answer rating: 100% (QA)

The cost of goods sold is calculated as follows Beginning inventory Pu... View the full answer