Hoover Company Purchased Two Identical Inventory Items

question 116

Multiple Choice

Hoover Company purchased two identical inventory items.The item purchased first cost $33.00.The item purchased second cost $35.00.Then Hoover sold one of the inventory items for $62.00.Based on this information:

• A)the amount of ending inventory is $35.00 if Hoover uses the LIFO cost flow method.
• B)the amount of gross margin is $28.00 if Hoover uses the weighted average cost flow method.
• C)the amount of cost of goods sold is $35.00 if Hoover uses the FIFO cost flow method.
• D)the amount of cost of goods sold is $33.00 if Hoover uses the LIFO cost flow method.

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Definitions:

Workers' Compensation Carrier

A specialized insurance provider that offers workers' compensation insurance to employers, covering workplace injury or illness.

Safety Procedures

Established protocols or actions designed to maintain safety and prevent harm in various environments or operations.

Wrongdoing

An act or behavior that is illegal or morally corrupt.

Cooling-Off Period

A legally defined time frame during which a consumer can cancel a contract without penalty, often associated with doorstep selling and financial agreements.