Reference no: EM132803337

Problem 1: Hoover Company purchased two identical inventory items. The item purchased first cost $33.00. The item purchased second cost $35.00. Then Hoover sold one of the inventory items for $62.00. Based on this information, which of the following statements is true?

A.) The ending inventory is $35.00 if Hoover uses the LIFO cost flow method

B.) The gross margin is $28.00 if Hoover uses the weighted-average cost flow method

C.) The cost of goods sold is $35.00 if Hoover uses the FIFO cost flow method.

D.) The cost of goods sold is $33.00 if Hoover uses the LIFO cost flow method.

Problem 2: Which of the following is an administrative control?

A.) performance evlauation

B.) accuracy of the recording procedures

C.) keeping cash in a safe

D.) maintenance of accurate inventory records