Hoover Company purchased two identical inventory items. The item purchased first cost $34.00. The item purchased second cost $37.75. Then Hoover sold one of the inventory items for $75. Based on this information, the amount of:

Multiple Choice

• ending inventory is $37.75 if Hoover uses the LIFO cost flow method.
• cost of goods sold is $37.75 if Hoover uses the FIFO cost flow method.
• gross margin is $39.12 if Hoover uses the weighted average cost flow method.
• cost of goods sold is $34.00 if Hoover uses the LIFO cost flow method.