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Carla Vista Company began operations on January 1, 2023 and uses the FIFO method in costing its raw material inventory. Management is contemplating a
Carla Vista Company began operations on January 1, 2023 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 2023 2024 FIFO $720000 $762000 LIFO 570000 566000 Net Income (computed under the FIFO method) 890000 1200000 Based on the above information, a change to the LIFO method in 2024 (ignore income tax considerations) would result in net income for 2024 of
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