Goodee Bakery Is Considering a Change in Its Inventory Valuation

question 133

Multiple Choice

Goodee Bakery is considering a change in its inventory valuation method.Goodee Bakery currently uses the FIFO method and is considering a change to the LIFO method.Goodee Bakery started the year on January 1 with inventory at a FIFO cost of $22,000 and a LIFO cost of $20,500.The ending inventory on December 31 is $24,750 at FIFO cost and $21,800 at LIFO cost.The LIFO effect is ________.

• A)$2,950
• B)$1,500
• C)$4,450
• D)$1,450

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