Lanier Company Began Operations on January 1, 2010, and Uses

question 69

Multiple Choice

Lanier Company began operations on January 1, 2010, and uses the FIFO method in costing its raw material inventory.Management is contemplating a change to the average cost method and is interested in determining what effect such a change will have on net income.Accordingly, the following information has been developed:

Based upon the above information, a change to the average cost method in 2011 would result in net income for 2011 of

• A)$540,000.
• B)$600,000.
• C)$620,000.
• D)$660,000.

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