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Business, 06.12.2021 22:50 stefani5519

Blossom Company began operations on January 1, 2020, 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 2020 2021 FIFO $520000 $ 592000 LIFO 470000 586000 Net Income (computed under the FIFO method) 870000 1250000 The company deems it impracticable to apply the retrospective approach. Based on the above information, a change to the LIFO method in 2021 would result in net income for 2021 of:.
a. $870000.
b. $1244000.
c. $1250000.
d. $1060000.

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Blossom Company began operations on January 1, 2020, and uses the FIFO method in costing its raw mat...
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