Lanier company began operations on january 1 2010 and uses

Reference no: EM13597879

Lanier Company began operations on January 1, 2010, 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 2010 2011
FIFO $320,000 $360,000
LIFO 240,000 300,000
Net Income (computed under the FIFO method) 500,000 600,000

Based upon the above information, a change to the LIFO method in 2011 would result in net income for 2011 of:
a) $600,000
b) $620,000
c) $660,000
d) $540,000

Reference no: EM13597879

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