Hoover Company purchased two identical inventory items. The item purchased first cost $33.00. The item purchased second cost $35.00. Then Hoover sold one of the inventory items for $62.00. Based on this information, which of the following statements is true?
A. The cost of goods sold is $33.00 if Hoover uses the LIFO cost flow method.
B. The gross margin is $28.00 if Hoover uses the weighted-average cost flow method.
C. The ending inventory is $35.00 if Hoover uses the LIFO cost flow method.
D. The cost of goods sold is $35.00 if Hoover uses the FIFO cost flow method.
Answer: B
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