Wildhorse Company began operations on January 1, 2023 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 onnet income. Accordingly, the following information has been developed:Final InventoryFIFOLIFO2023$680000O $1306000.O $1375000.O $1310000.O $1180000.550000Net Income (computed under the FIFO method) 10800002024$6760006720001310000Based on the above information, a change to the LIFO method in 2024 (ignore income tax considerations) would result in net incomefor 2024 of

Inventory of 2024FIFO $ 676000LIFO $ 672000

Answered: Based on the above information, a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Based on the above information, a change to the LIFO method in 2024 (ignore income tax considerations) would result in net income for 2024 of