A retailing firm changed from LIFO to FIFO in 2014.Inventory valuations for the two methods appear below:
Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,choose the following:
A) $4,000 RE $55,000
B) $7,000 RE $58,000
C) $4,000 Earnings $55,000
D) $7,000 Earnings $58,000

Question

A retailing firm changed from LIFO to FIFO in 2014.Inventory valuations for the two methods appear below:
  Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,choose the following: 
A) $4,000 RE $55,000 
B) $7,000 RE $58,000 
C) $4,000 Earnings $55,000 
D) $7,000 Earnings $58,000

Quizplus · Accepted Answer

The Answer of A retailing firm changed from LIFO to FIFO in 2014.Inventory valuations for the two methods appear below:
  Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,choose the following: 
A) $4,000 RE $55,000 
B) $7,000 RE $58,000 
C) $4,000 Earnings $55,000 
D) $7,000 Earnings $58,000

A Retailing Firm Changed from LIFO to FIFO in 2014