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. Multiple Choice 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.

Respuesta :

Answer:

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

Explanation:

FIFO Perpetual chart is attached.

FIFO Perpetual chart shows purchases , sales and balance of each period.  We must see final situation to know which is the final inventory balance.

The balance at the end of March is

Units Unit Cost Total

   1              7                   $7,00

Total=$7.00

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