Blake Company purchased two identical inventory items. The item purchased first cost $27.00, and the item purchased second cost $28.00. Blake sold one of the items for $50.00. Which of the following statements istrue?Multiple ChoiceOThe dollar amount assigned to ending inventory will be the same matter which inventory cost flow method is used.Cost of goods sold will be higher if Blake uses the FIFO rather than the weighted-average inventory cost flow method.Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method.

FIFO is Fist In First Out means the goods purchased earlier will be issued…

Answered: ake Company purchased two identical…

Business

Accounting

ake Company purchased two identical inventory items. The item purchased first cost $27.00, and the item purchased 102

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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