Heinz Company began operations on January 1, 2019, 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 2019 2020 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 2020 of a. ₱1,070,000 c. ₱954,000 b. ₱1,030,000 d. ₱950,000
Heinz Company began operations on January 1, 2019, 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 2019 2020 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 2020 of a. ₱1,070,000 c. ₱954,000 b. ₱1,030,000 d. ₱950,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 6E: Berg Company began operations on January 1, 2019, and uses the FIFO method in costing its raw...
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Heinz Company began operations on January 1, 2019, 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 2019 2020
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 2020 of
a. ₱1,070,000 c. ₱954,000
b. ₱1,030,000 d. ₱950,000
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