A retailing firm changed from LIFO to FIFO in 2014.Inventory valuations for the two methods appear below:
Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,in the comparative 2013 and 2014 income statements,what amounts would be shown for cost of goods sold? 2013 2014
A) $50,000 $58,000
B) $51,000 $55,000
C) $50,000 $55,000
D) $51,000 $58,000

Question

A retailing firm changed from LIFO to FIFO in 2014.Inventory valuations for the two methods appear below:
  Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,in the comparative 2013 and 2014 income statements,what amounts would be shown for cost of goods sold? 2013 2014
A) $50,000 $58,000 
B) $51,000 $55,000 
C) $50,000 $55,000 
D) $51,000 $58,000

Quizplus · Accepted Answer

Without specific data from the income statements for 2013 and 2014, it's impossible to accurately determine the cost of goods sold for those years. However, choice C is selected based on the structure of the question, which implies that it is the correct answer despite the lack of provided data.

A Retailing Firm Changed from LIFO to FIFO in 2014