Teal,Inc. ,used the lower of cost or market to value inventory in 2014.The ending inventory at cost was $400,000 and the ending inventory at market was $385,000.In 2015,Teal changed to the LIFO method.The company's beginning LIFO inventory is $400,000.

Question

Quizplus · Accepted Answer

The lower of cost or market cannot be used in conjunction with LIFO.So the inventory must be written up from $385,000 to $400,000.

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