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hoover company purchased two identical inventory items. the item purchased first cost $46.00. the item putchased...

hoover company purchased two identical inventory items. the item purchased first cost $46.00. the item putchased second cost $51.75. then hoover sold one of the inventory items for $75. based on the ingormation, the amount of:
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Answer #1

As per FIFO ie first in fist out concept the goods sold will be the items purchased first ie cost of goods sold will be =$46.00

Weighted average cost per unit will be

=(46.00+51.75)/2

=97.72/2

=$48.86

Hence gross margin=Sales-Cost of goods sold

=(75-48.86)=$26.14

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