Rosierre Company purchased two identical inventory items. One of the items cost $6.00 and was purchased in January. The other was purchased in February, and the company paid $7.00 for this item. One of the items was sold in March at a price of $10.00. Select the correct answer assuming that Rosierre uses a FIFO cost flow assumption.

A - The balance in ending inventory would be $7.00.

B - The amount of gross margin would be $3.00.

C - The amount of ending inventory would be $6.50.

D - The amount of ending inventory would be $6.00.