Sweet Treats is considering a change in its inventory valuation method. Sweet Treats currently uses the FIFO
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Question:
Sweet Treats is considering a change in its inventory valuation method. Sweet Treats currently uses the FIFO method and is considering a change to the LIFO method. Sweet Treats started the year on January 1 with inventory at a FIFO cost of $35,000 and a LIFO cost of $26,750. The ending inventory on December 31 is $29,980 at FIFO cost and $25,810 at LIFO cost. Cost of goods sold under the LIFO basis is $74,600 for the current year. The LIFO effect is ________.
$8,250
$4,170
$12,420
$4,080
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