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La Casita Restaurants Changed from the FIFO Method of Inventory

Question 45

Multiple Choice

La Casita Restaurants changed from the FIFO method of inventory costing to the weighted average method during 2018. When reported in the 2018 comparative financial statements, the 2017 inventory amount will be:


A) Increased.
B) Decreased.
C) Increased or decreased, depending on how prices changed.
D) Unaffected.

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