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Question - Quality Diamonds carries only one brand and size of diamonds - all are identical. Each of the batch of diamonds purchased is carefully coded and marked with its purchase cost. The following data are available.
March 1. Opening Inventory, 150 diamonds at a cost of $300 per diamond
March 3. Purchased 200 diamonds at a cost of $350 Each
March 5. Sold 180 diamonds for $600 each
March 10. Purchased 350 diamonds at a cost of $375 each.
March 25. Sold 500 diamonds for $650 each.
Required - Which cost flow method should Quality Diamonds select? Explain.
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