Business, 18.06.2021 03:00, jakhunter354

Heinz Company began operations on January 1, 2020, 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
2017 2018
FIFO $640,000 $712,000
LIFO $560,000 $636,000
Net Income
(computed under the FIFO method) $980,000 $1,030,000

Based on the above information, a change to the LIFO method in 2020 would result in net income for 2018 of .

a. $1,070,000
b. $1,030,000
c. $954,000
d. $950,000

Answers: 1

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Heinz Company began operations on January 1, 2020, and uses the FIFO method in costing its raw mater...