Benson Company Purchased Two Identical Inventory Items

Multiple Choice

Benson Company purchased two identical inventory items. The item purchased first cost $14.00, and the item purchased second cost $15.00. Benson sold one of the items for $24.00. Which of the following statements is true?

A) Ending inventory will be lower if Benson uses weighted average than if FIFO were used.
B) Cost of goods sold will be higher if Benson uses FIFO than if weighted average were used.
C) The dollar amount assigned to ending inventory will be the same no matter which cost flow method is used.
D) Gross margin will be higher if Benson uses LIFO than it would be if FIFO were useD.If Benson uses weighted average, ending inventory will be $14.50. If the company uses FIFO, ending inventory will be $15.00.