Use the following information for questions 114 through 118.
The following data concerning the retail inventory method are taken from the financial records of Welch Company.
-Assuming no change in the price level if the LIFO inventory method were used in conjunction with the data, the ending inventory at cost would be
A) $127,800.
B) $126,000.
C) $122,400.
D) $129,600.

Question

Use the following information for questions 114 through 118.
The following data concerning the retail inventory method are taken from the financial records of Welch Company. 
-Assuming no change in the price level if the LIFO inventory method were used in conjunction with the data, the ending inventory at cost would be
A) $127,800. 
B) $126,000. 
C) $122,400. 
D) $129,600.

Quizplus · Accepted Answer

Under the LIFO (Last-In, First-Out) inventory method, the most recent costs are used to value the cost of goods sold, and the oldest costs are used to value ending inventory. Assuming no change in the price level, the ending inventory at cost would be calculated using the oldest inventory costs, which corresponds to choice B, $126,000.

Use the Following Information for Questions 114 Through 118