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Slowe Company Has Been Using the LIFO Cost Method of Inventory

Question 32

Short Answer

Slowe Company has been using the LIFO cost method of inventory valuation for 8 years. Its 2008 ending inventory was $135,000 but it would have been $180,000 if FIFO had been used. Thus, if FIFO had been used, Slowe's net income before income taxes would have been
A) $45,000 less in 2008.
B) $45,000 more in 2008.
C) $45,000 greater over the 8-year period.
D) $45,000 less over the 8-year period.

Correct Answer:

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$180,000 ...

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