White Corporation Uses the FIFO Method for Internal Reporting Purposes

question 39

Multiple Choice

White Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2014 was $160,000. The balance in the same account at the end of 2015 is $240,000. White's Cost of Goods Sold account has a balance of $1,200,000 from sales transactions recorded during the year. What amount should White report as Cost of Goods Sold in the 2015 income statement?

• A) $1,120,000.
• B) $1,200,000.
• C) $1,280,000.
• D) $1,440,000.

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Definitions:

Interment

The burial of a body in a grave or tomb, typically with funeral rites.

Levirate

A practice in some cultures where a widow marries a brother of her deceased husband to maintain lineage and inheritance.

Rite Of Passage

An observance or occasion signifying a significant phase in an individual's life, notably birth, the onset of puberty, matrimony, and demise.

Graduation Ceremony

A formal event where students receive their academic degrees or diplomas, marking the completion of a particular phase of education.