Pinkston Company Purchased Two Identical Inventory Items

Pinkston Company purchased two identical inventory items. One of the items, purchased in January, cost $18.00. The other, purchased in February, cost $19.00. One of the items was sold in March at a selling price of $30.00. Select the correct answer assuming that Pinkston uses a LIFO cost flow.

A) The balance in ending inventory would be $19.00.
B) The amount of gross margin would be $11.00.
C) The amount of ending inventory would be $18.50.
D) The amount of cost of goods sold would be $18.00.

Correct Answer:

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