The accountant at Peacock Company has determined that gross profit amounted to $6,500 using the FIFO costing method. If the grossprofit is $1,060 greater than if the LIFO costing method were used, what would be the amount of gross profit under the LIFO method?

Question

Quizplus · Accepted Answer

Using the FIFO method, gross profit is given as $6,500. Let the gross profit using the LIFO method be X.

According to the problem, we can form the equation:

X - $6,500 = $1,060

Solving for X, we get:

X = $7,560

Therefore, the amount of gross profit under the LIFO method would be $7,560.

Hence, the correct answer is B.

The Accountant at Peacock Company Has Determined That Gross Profit