Poole Company Purchased Two Identical Inventory Items

question 64

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.

---

Definitions:

Consumer Sovereignty

The theory that consumer preferences determine the production of goods and services, making consumers the driving force of the economy.

Fundamental Economic Question

The basic inquiries regarding how a society decides on the allocation of scarce resources to satisfy unlimited wants.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand.

Dollar Votes

A concept in economics where consumers show preference for goods and services by how they spend their money, influencing production and market trends.