A Retailing Firm Changed from LIFO to FIFO in 2014

question 59

Short Answer

A retailing firm changed from LIFO to FIFO in 2014. Inventory valuations for the two methods appear below:
Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,in the comparative 2013 and 2014 income statements,what amounts would be shown for cost of goods sold?

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Definitions:

Perform

To carry out, execute, or do an action or activity.

Competent

Having the necessary ability, knowledge, or skill to perform a task effectively or to make legally binding decisions.

Adequate Market

An economic concept where there is a sufficient number of buyers and sellers for a particular product or service.

Common Law

A legal system based on precedent and judicial decisions, rather than written laws or statutes, primarily in the UK and former British colonies.