Haley Company Purchased Two Identical Inventory Items

question 104

Multiple Choice

Haley Company purchased two identical inventory items. The item purchased first cost $32.00. The item purchased second cost $35.00. Haley sold one of the inventory items for $60.00. Based on this information:

• A)the amount of ending inventory is $32.00 if Haley uses the LIFO cost flow method.
• B)the amount of gross margin is $26.50 if Haley uses the weighted average cost flow method.
• C)the amount of cost of goods sold is $32.00 if Haley uses the FIFO cost flow method.
• D)All of the above are correct.

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Definitions:

Decision Makers

Individuals or groups within an organization responsible for making choices that affect the company's direction, operations, and policies.

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior, focusing on the morality of human actions.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Penalty

A punishment imposed for breaking a law, rule, or contract.