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In 2024, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2023 of $102,000 would have been $120,000 if FIFO had been used. Inventory at the end of 2024 is $133,000 using the new FIFO method but would have been $123,000 if the company had continued to use LIFO. What is the effect of the change on 2024 cost of goods sold? 2024 cost of goods sold is higher

In 2024, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2023 of $102,000 would have been $120,000 if FIFO had been used. Inventory at the end of 2024 is $133,000 using the new FIFO method but would have been $123,000 if the company had continued to use LIFO. What is the effect of the change on 2024 cost of goods sold? 2024 cost of goods sold is higher

FINANCIAL ACCOUNTING
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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In 2024, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2023 of $102,000 would have been $120,000 if FIFO had been used. Inventory at the end of 2024 is $133,000 using the new FIFO method but would have been $123,000 if the company had continued to use LIFO. What is the effect of the change on 2024 cost of goods sold? 2024 cost of goods sold is higher
Transcribed Image Text:In 2024, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2023 of $102,000 would have been $120,000 if FIFO had been used. Inventory at the end of 2024 is $133,000 using the new FIFO method but would have been $123,000 if the company had continued to use LIFO. What is the effect of the change on 2024 cost of goods sold? 2024 cost of goods sold is higher
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