Loyer Company began operations on January 1, 2022, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Final Inventory 2022 2023 FIFO $640,000 $ 712,000 LIFO 560,000 636,000 Net Income (computed under the FIFO method) 980,000 1,030,000 Based on the above information, a change to the LIFO method in 2023 would result in net income for 2023 of
Loyer Company began operations on January 1, 2022, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Final Inventory 2022 2023 FIFO $640,000 $ 712,000 LIFO 560,000 636,000 Net Income (computed under the FIFO method) 980,000 1,030,000 Based on the above information, a change to the LIFO method in 2023 would result in net income for 2023 of
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 6E: Berg Company began operations on January 1, 2019, and uses the FIFO method in costing its raw...
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Loyer Company began operations on January 1, 2022, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed:
|
Final Inventory
|
2022
|
2023
|
|
FIFO
|
$640,000
|
$ 712,000
|
|
LIFO
|
560,000
|
636,000
|
|
Net Income (computed under the FIFO method)
|
980,000
|
1,030,000
|
Based on the above information, a change to the LIFO method in 2023 would result in net income for 2023 of
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