Blake Company Purchased Two Identical Inventory Items

question 55

Multiple Choice

Blake Company purchased two identical inventory items.The item purchased first cost $16.00,and the item purchased second cost $18.00.Blake sold one of the items for $24.00.Which of the following statements is true?

• A)Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.
• B)Cost of goods sold will be higher if Blake uses the FIFO rather than the weighted-average inventory cost flow method.
• C)The dollar amount assigned to ending inventory will be the same no matter which inventory cost flow method is used.
• D)Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method.

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Definitions:

Action Potential

A temporary reversal of an electric membrane potential, allowing for signal conduction in neurons.

Anterior Pituitary Cell

A type of cell located in the anterior lobe of the pituitary gland, responsible for producing and releasing hormones that regulate various bodily functions.

Steroid Hormones

Steroid hormones are a class of hormones derived from cholesterol that act as chemical messengers in the body, including sex hormones and corticosteroids.

Plasma Membrane

The lipid bilayer membrane that surrounds a cell, controlling the movement of substances in and out of the cell.