Hoover Company Purchased Two Identical Inventory Items

question 92

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, the amount of:

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

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Definitions:

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA.

Mitotic Cell Divisions

A process where a single cell divides into two identical daughter cells, each with the same number of chromosomes as the parent cell, essential for growth and repair.

Blastocyst

An early stage in human embryonic development, a structure formed about five days post-fertilization, consisting of an inner cell mass and an outer layer of trophoblast cells.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of human development.