Beth Company purchased two identical inventory items. The first purchase cost $8 and the second cost...

Beth Company purchased two identical inventory items. The first purchase cost $8 and the second cost $10. The Company sold one of the items for $21. If the Company uses the LIFO cost flow method, the amount of gross margin shown on the income statement will be $______

Expert Solution

Gross Margin = Sales Revenue - Cost of Goods Sold

As company uses Lifo, units purchased last are sold first.

Gross margin = 21 - 10

= 11

ekkarill92 answered 2 years ago

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