Heinz Company Began Operations on January 1, 2014, and Uses

question 51

Multiple Choice

Heinz Company began operations on January 1, 2014, 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: Based on the above information, a change to the LIFO method in 2015 would result in net income for 2015 of

• A) $1,170,000.
• B) $1,130,000.
• C) $1,054,000.
• D) $1,050,000.