Hoover Company Purchased Two Identical Inventory Items

question 51

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,which of the following statements is true?

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

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Definitions:

Federal Government

A system of government in which powers and responsibilities are divided between a national government and state or provincial governments.

Surplus Federal Budget

A situation where the federal government's revenues exceed its expenditures within a given fiscal period.

National Saving

The total saving of a country, composed of the savings accumulated by both the private sector and the government, available for investment.

Aggregate Demand

A complete tally of the demand for goods and services in an economy, at an agreed upon price level during a precise time period.