Poole Company Purchased Two Identical Inventory Items

Multiple Choice

Poole Company purchased two identical inventory items.One of the items,purchased in January,cost $4.50.The other,purchased in February,cost $4.75.One of the items was sold in March at a selling price of $7.50.Select the correct answer assuming that Poole uses a LIFO cost flow.

A) The balance in ending inventory would be $4.75.
B) The amount of gross margin would be $2.75.
C) The amount of ending inventory would be $4.625.
D) The amount of cost of goods sold would be $4.50.