Blake Company Purchased Two Identical Inventory Items

question 41

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