Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $30. The other, purchased in February, cost $37. One of the items was sold in March at a selling price of $90. Assuming that Poole uses a LIFO cost flow, which of the following statements is correct?

Multiple Choice

• The balance in ending inventory would be $37.
• The amount of ending inventory would be $33.50.
• The amount of cost of goods sold would be $30.
• The amount of gross margin would be $53.