Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $4.50. The other, purchased in February, cost $4.75. One of the items was sold in March at a selling price of $7.50. Poole uses LIFO. Which of the following statements is true?
A. The amount of cost of goods sold would be $4.50.
B. The amount of gross margin would be $2.75.
C. The amount of ending inventory would be $4.625.
D. The balance in ending inventory would be $4.75.
Answer: B
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Answer the following statement true (T) or false (F)
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What will be an ideal response?