Rosierre Company Purchased Two Identical Inventory Items

question 92

Multiple Choice

Rosierre Company purchased two identical inventory items. One of the items cost $6.00 and was purchased in January. The other was purchased in February, and the company paid $7.00 for this item. One of the items was sold in March at a price of $10.00. Select the correct answer assuming that Rosierre uses a FIFO cost flow assumption.

• A) The balance in ending inventory would be $7.00.
• B) The amount of gross margin would be $3.00.
• C) The amount of ending inventory would be $6.50.
• D) The amount of ending inventory would be $6.00.

---

Definitions:

Spelling

The process of verifying and correcting the spelling of words in a text document with the help of software tools.

Grammar

The set of rules and principles that govern the structure of sentences in a language, ensuring clear and effective communication.

Artistic Effect

A feature in graphic design software that applies creative visual filters to photos or images, simulating artistic styles.

Picture Style

Predefined sets of adjustments that can be applied to photos to achieve a specific look or effect in photography and imaging software.