Poole Company Purchased Two Identical Inventory Items

Multiple Choice

Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $50. The other, purchased in February, cost $66. One of the items was sold in March at a selling price of $190. Poole uses LIFO. Which of the following statements is true?

A) The balance in ending inventory would be $66.
B) The amount of gross margin would be $124.
C) The amount of ending inventory would be $58.
D) The amount of cost of goods sold would be $50.