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mkendrick08 mkendrick08
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5 years ago
Sweet Treats is considering a change in its inventory valuation method. Sweet Treats currently uses the FIFO method and is considering a change to the LIFO method. Sweet Treats started the year on January 1 with inventory at a FIFO cost of $34,000 and a LIFO cost of $26,750. The ending inventory on December 31 is $29,920 at FIFO cost and $25,900 at LIFO cost. Cost of goods sold under the LIFO basis is $74,600 for the current year. The LIFO effect is ________.
A) $7250
B) $4020
C) $11,270
D) $3230
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
Authors:
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#1
5 years ago
 D
Explanation:  LIFO Reserve Jan. 1: $34,000 - $26,750 = $7250
LIFO Reserve Dec. 31: $29,920- $25,900 = $4020
LIFO Effect: $7250 - $4020 = $3230
mkendrick08 Author
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#2
5 years ago
White Heavy Checkmark
wrote...
#3
5 years ago
Don't forget to rate the answer too
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