$2$

$2$ points

Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $$4\mathrm{.}50.$ The other, purchased in February, cost $$4\mathrm{.}75.$ One of the items was

sold in March at a selling price of $$7\mathrm{.}50.$ Assuming that Poole uses a last$-$in$,$ first$-$out cost flow, which of the following statements is correct?

The amount of cost of goods sold would be $$4\mathrm{.}50.$

The amount of ending inventory would be $$4\mathrm{.}625.$

The amount of gross margin would be $$2\mathrm{.}75.$

The balance in ending inventory would be $$4\mathrm{.}75.$