Hoover Company purchased two identical inventory items. The item purchased first

Question

Hoover Company purchased two identical inventory items. The item purchased first cost $47.00. The item purchased second cost $52.50. Then Hoaver sold one of the inventory items for $75. Based on this information, the amount of Multiple Choice ending inventory is $52.50 Hoover uses the LIFO cost flow methosd cost of goods soid is $52.50 Hoover uses the FIFO cost tow mehod. cost of goods sold is $4700 it Hoover saes the LIfO cost fioww aithod gross margin s 325 2S it Hoover uses the wighited average cost now methodt

Explanation / Answer

Average cost=(47+52.5)/2=$49.75 Gross margin under average method=75-49.75=$25.25 Option 4 is correct

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