In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020 of $123,000 would have been $137,000 if FIFO had been used. Inventory at the end of 2021 is $150,000 using the new FIFO method but would have been $145,000 if the company had continued to use LIFO. What is the effect of the change on 2021 cost of goods sold?

In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020 of $123,000 would have been $137,000 if FIFO had been used. Inventory at the end of 2021 is $150,000 using the new FIFO method but would have been $145,000 if the company had continued to use LIFO. What is the effect of the change on 2021 cost of goods sold?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PB: Company Edgar reported the following cost of goods sold but later realized that an error had been...

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