Hoover Company purchased two identical inventory items. The item purchased first cost $41.00. The item purchased second cost $45.50. Then Hoover sold one of the inventory items for $60. Based on this information, which of the following statements is true? Multiple Choice The gross margin is $16.75 if Hoover uses the weighted-average cost flow method. The cost of goods sold is $41.00 if Hoover uses the LIFO cost flow method. The ending inventory is $45.50 if Hoover uses the LIFO cost flow method. The cost of goods sold is $45.50 if Hoover uses the FIFO cost flow method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hoover Company purchased two identical inventory items. The item purchased first cost $41.00. The item purchased second cost $45.50. Then Hoover sold one of the inventory items for $60. Based on this information,
which of the following statements is true?
Multiple Choice
The gross margin is $16.75 if Hoover uses the weighted-average cost flow method.
The cost of goods sold is $41.00 if Hoover uses the LIFO cost flow method.
The ending inventory is $45.50 if Hoover uses the LIFO cost flow method.
The cost of goods sold is $45.50 if Hoover uses the FIFO cost flow method.
Transcribed Image Text:Hoover Company purchased two identical inventory items. The item purchased first cost $41.00. The item purchased second cost $45.50. Then Hoover sold one of the inventory items for $60. Based on this information, which of the following statements is true? Multiple Choice The gross margin is $16.75 if Hoover uses the weighted-average cost flow method. The cost of goods sold is $41.00 if Hoover uses the LIFO cost flow method. The ending inventory is $45.50 if Hoover uses the LIFO cost flow method. The cost of goods sold is $45.50 if Hoover uses the FIFO cost flow method.
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