Lanier Company began operations on January 1, 2014, 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: Based upon the above information, a change to the LIFO method in 2015 would result in net income for 2015 of
A) $590,000.
B) $650,000.
C) $670,000.
D) $710,000.

Question

Lanier Company began operations on January 1, 2014, 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:  Based upon the above information, a change to the LIFO method in 2015 would result in net income for 2015 of
A) $590,000. 
B) $650,000. 
C) $670,000. 
D) $710,000.

Quizplus · Accepted Answer

The Answer of Lanier Company began operations on January 1, 2014, 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:  Based upon the above information, a change to the LIFO method in 2015 would result in net income for 2015 of
A) $590,000. 
B) $650,000. 
C) $670,000. 
D) $710,000.

Lanier Company Began Operations on January 1, 2014, and Uses