Lifo method and net income

Reference no: EM13136516

Hannah Company began operations on January 1, 2007, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed:

Final Inventory 2007 2008
FIFO $320,000 $360,000
LIFO 240,000 300,000

Net Income (computed under the FIFO method) 500,000 600,000

Based upon the above information, a change to the LIFO method in 2008 would result in net income for 2008 of

A. $540,000.

B. $660,000.

C. $620,000.

D. $600,000.

Reference no: EM13136516

Questions Cloud

Liberal and conservative perspectives : First a quick definition. Grants-in-aid are financial grants from the federal government to a lower governing body in order to fund a program that is required or encouraged by the federal government.

Calculate the amount of the note payable at december : Calculate the amount of the note payable at December 31, 2009 that would be classified as a long-term liability. Do not use decimals in your answer.

Ethical decision-making in public sector : Discuss ethical decision-making in the public sector. It includes Cooper's five steps for ethical decision-making. It offers a very brief overview of ethical decision-making by the public administrator.

What mass of f2 is needed : P4(s) + F2(g) PF3(g) What mass of F2 is needed to produce 151 g of PF3 if the reaction has a 79.3% yield?

Lifo method and net income : Based upon the above information, a change to the LIFO method in 2008 would result in net income for 2008 of

What is the character of jake and kara gains : Kara (owning 37.5% of Price) receives 14,000 shares (value $140,000) and $10,000. Jake and Kara each recognize gains to the extent of the cash they received. What is the character of Jake's and Kara's gains?

Outsourcing federal government services : Would you out source key government service? Explain why or why not and give specific example to support your position.

Probability that average diameter of sand dollars is more : Find the probability that the average diameter of those sand dollars is more than 4.13 centimeters. Assume that the variable is normally distributed.

Public administration discretion : Do you think that public administrators should be restricted to only laid down rules in discharge of their duties as espoused by Max Weber or should they have some amount of discretion.

User Account

All Pages