Hoover Company Purchased Two Identical Inventory Items

Multiple Choice

Hoover Company purchased two identical inventory items. The item purchased first cost $46.00. The item purchased second cost $51.75. Then Hoover sold one of the inventory items for $75. Based on this information, which of the following statements is true?

A) The ending inventory is $51.75 if Hoover uses the LIFO cost flow method.
B) The gross margin is $26.12 if Hoover uses the weighted-average cost flow method.
C) The cost of goods sold is $51.75 if Hoover uses the FIFO cost flow method.
D) The cost of goods sold is $46.00 if Hoover uses the LIFO cost flow method.