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Name: Delta Diamonds uses a periodic inventory system. The company had five
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Description: Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $650, two were purchased on July 9 for $700 each, and two were purchased on September 23 for $750 e

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $650, two were purchased on July 9 for $700 each, and two were purchased on September 23 for $750 each. On December 24, it sold one of the diamonds that was purchased on July 9.

Using the FIFO method, its cost of goods sold for the year ended is:

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