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Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $44....

Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $44. The other, purchased in February, cost $58. One of the items was sold in March at a selling price of $160. Assuming that Poole uses a LIFO cost flow, which of the following statements is correct?

Multiple Choice

  • The balance in ending inventory would be $58.

  • The amount of gross margin would be $102.

  • The amount of ending inventory would be $51.00.

  • The amount of cost of goods sold would be $44.

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Answer #1

Under LIFO method, it is assumed that the goods purchased later in point of time is sold first. In the current situation, inv

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