Poole Company Purchased Two Identical Inventory Items

question 51

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. Assuming that Poole uses a LIFO cost flow, which of the following statements is correct?

• 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:

Globalizing Culture

The process through which cultural aspects spread across global society, leading to shared norms, values, and lifestyles across different societies.

Subcultural Languages

Specialized languages or dialects developed within specific subcultures to establish identity and differentiate from the mainstream culture.

Dialects

The varying forms of a language that reflect particular regions, occupations, or social classes and that are similar enough to be mutually intelligible.

Linguistic Nationalism

The attempt by ethnic groups and even countries to proclaim independence by purging their language of foreign terms.