Teal, Inc., used the lower of cost or market to value inventory in 2017. The ending inventory at cost was $400,000 and the ending inventory at market was $385,000. In 2018, Teal changed to the LIFO method. The company's beginning LIFO inventory is $400,000.

Question

Quizplus · Accepted Answer

The information provided indicates that Teal, Inc., used the lower of cost or market method to value inventory in 2017 and then switched to the LIFO method in 2018. The beginning LIFO inventory for 2018 is provided as $400,000, which matches the ending inventory at cost from 2017. Therefore, the statement is true.

Teal, Inc, Used the Lower of Cost or Market to Value