Poole Company Purchased Two Identical Inventory Items

question 29

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.Poole uses LIFO.Which of the following statements is true?

• 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.

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Definitions:

Life Expectancy

The average period that an individual is expected to live, based on demographic factors such as current age and health conditions.

Roth Retirement Plan

A type of retirement account that allows qualified withdrawals on a tax-free basis, provided certain conditions are met.

Withdrawals

The act of taking money out of an account.

Tax Free

Refers to financial income or accounts that are not subject to taxation by the government, often used to encourage specific investments or savings.