Use the following information for the two questions below. Fallon Company manufactures a product called Roots Shampoo. On December31, 2017, Fallon adopted thedollar-value LIFO inventory method. The inventory of Roots Shampoo on that date using thedollar-value LIFO inventory method was$450,000. Inventory data are asfollows:

Year Inventory at year-end $ Price Index

2018 $630,000 1.05

2019 680,000 1.15

2020 800,000 1.25

What is endinginventory, using thedollar-value LIFO method for2020?

A.

$658,370

B.

$659,239

C.

$681,739

D.

$680,000

The journal entry to record the LIFO reserve in 2020 willinclude:

A.

A debit to Cost of Goods Sold for$140,761

B.

A credit to LIFO Reserve for$59,130

C.

A credit to Cost of Goods Sold for$59,130

D.

A debit to LIFO Reserve for$140,761