Problem - A retailing firm changed from LIFO to FIFO in 2011. Inventory valuations for the two methods appear below:
1/1/2010
1/1/2011
1/31/2011
FIFO
$ 10,000
$ 20,000
$ 25,000
LIFO
7,000
16,000
18,000
Purchases in 2010 and 2011 were $60,000 in each year.
Using the information above, in the comparative 2010 and 2011 income statements, what amounts would be shown for cost of goods sold?
2010 2011
A) $50,000 $58,000
B) $51,000 $55,000
C) $50,000 $55,000
D) $51,000 $58,000