In its annual report for the year ended January 31, 2011, Virco Manufacturing Corporation, a producer of school desks and other furniture, provided the following information regarding a change in inventory method (in part):

Change in Accounting Principle

On January 31, 2011, we elected to change our costing method for the material component of raw materials, work in process, and finished goods inventory to the lower of cost or market using the first-in first-out (