Blake Company Purchased Two Identical Inventory Items

question 55

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

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Definitions:

Carboxylic Acids

Organic compounds characterized by a carboxyl group (-COOH), known for their acidic properties.

Grignard Reagents

Reactive compounds consisting of magnesium bonded to an organic group, used in the formation of carbon-carbon bonds.

Infrared Spectrum

A representation of the infrared light absorption or emission of a substance, providing information about molecular vibrations and compound identity.

Carboxylic Acid

An organic compound containing a carboxyl group, characterized by the presence of at least one carbon atom double-bonded to an oxygen atom and also bonded to a hydroxyl group.