QV-TV,Inc.provided the following items in their footnotes for the year-end 2010:
Cost of goods sold was $22 billion under FIFO costing and their inventory value under FIFO costing was $2.1 billion.The LIFO Reserve for year-end 2009 was a $0.6 billion credit balance and at year-end 2010 it had increased to a credit balance of $0.8 billion.How much is the 2010 LIFO cost of goods sold?
A)$22.2 billion
B)$19.8 billion
C)$22.8 billion
D)$19.2 billion

Question

Quizplus · Accepted Answer

LIFO cost of goods sold ($22.2 billion) = FIFO cost of goods sold ($22 billion) + the increase in LIFO reserve ($0.2 billion)

QV-TV,IncProvided the Following Items in Their Footnotes for the Year-End