Question

Hale Company purchased two identical inventory items. The item purchased first cost $22.00. The item purchased second cost $25.00. Hale sold one of the inventory items for $40.00. Based on this information: A. the amount of ending inventory is $22.00 if Hale uses the LIFO cost flow method. B. the amount of gross margin is $15.00 if Hale uses the weighted average cost flow method. C. the amount of cost of goods sold is $25.00 if Hale uses the FIFO cost flow method. D. the amount of gross margin is $15.00 if Hale uses the FIFO cost flow method

Answer 1

Answer:

The correct answer is A. the amount of ending inventory is $22.00 if Hale uses the LIFO cost flow method