Poole Company Purchased Two Identical Inventory Items

question 58

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.Select the correct answer assuming that Poole uses a LIFO cost flow.

• 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:

Structural Encoding

The process of encoding sensory input that has significant recognizable features.

Visualizing

Visualizing involves forming mental images or scenarios in the mind's eye, often used as a cognitive strategy for problem-solving, planning, or enhancing performance.

Rhyming Words

Words that have the same ending sound, commonly used in poetry and music to create rhythm and resonance.

Self-Referent Encoding

is the process of relating new information to oneself, enhancing memory and recall of the information.