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 2010 was $80,000.The balance in the same account at the end of 2011 is $120,000.White's Cost of Goods Sold account has a balance of $600,000 from sales transactions recorded during the year.What amount should White report as Cost of Goods Sold in the 2011 income statement?

• A)$560,000.
• B)$600,000.
• C)$640,000.
• D)$720,000.

Understand the effect of saving policies on economic and health outcomes.

Understand the concept and the method of computing the Consumer Price Index (CPI).

Recognize the role and functions of the Bureau of Labor Statistics in relation to CPI.

Categorize the various methods and indices used to measure inflation.

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Definitions:

Process Further

The continuation of operations on goods or information to add more value before final output or completion.

Profit Difference

The change in profit resulting from differences in sales, costs, or other financial factors between two periods.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities required to produce them, aiming to provide more accurate product costing.

Relevant Cost Decision Model

A decision-making tool that focuses on the costs directly related to a specific business decision, ignoring sunk costs and irrelevant expenses.