question archive Hoover Company purchased two identical inventory items
Hoover Company purchased two identical inventory items
Subject:FinancePrice:3.87 Bought7
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, the amount of:
- ending inventory is $35.00 if Hoover uses the LIFO cost flow method.
- gross margin is $28.00 if Hoover uses the weighted average cost flow method.
- cost of goods sold is $35.00 if Hoover uses the FIFO cost flow method.
- cost of goods sold is $33.00 if Hoover uses the LIFO cost flow method.
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Answer:
B )
Step-by-Step explanation
Weighted average cost per unit= Total cost of goods available for sale/ Total units available for sale
= ($33 + $35)/2
=$34
Gross margin per unit sold = selling price per unit - Weighted average cost per unit
=$62 - $34
=$28
