Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $20. The other, purchased in February, cost $22. One of the items was sold in March at a selling price of $40. Assuming that Poole uses a LIFO cost flow, which of the following statements is correct? [] The balance in ending inventory would be $22. [] The amount of gross margin would be $18. [] The amount of ending inventory would be $21.00. [] The amount of cost of goods sold would be $20.

Multiple Choice

• The balance in ending inventory would be $22.

• The amount of gross margin would be $18.

• The amount of ending inventory would be $21.00.

• The amount of cost of goods sold would be $20.