Question
In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $120,000 would have been $135,000 if
In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $120,000 would have been $135,000 if FIFO had been used. Inventory at the end of 2018 is $153,000 using the new FIFO method but would have been $139,000 if the company had continued to use LIFO.
What is the effect of the change on 2018 cost of goods sold?
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
