What amounts would be shown for cost of goods sold

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Problem - A retailing firm changed from LIFO to FIFO in 2011. Inventory valuations for the two methods appear below:

1/1/2010

1/1/2011

1/31/2011

FIFO

$ 10,000

$ 20,000

$ 25,000

LIFO

7,000

16,000

18,000

Purchases in 2010 and 2011 were $60,000 in each year.

Using the information above, in the comparative 2010 and 2011 income statements, what amounts would be shown for cost of goods sold?

         2010          2011

A) $50,000     $58,000

B) $51,000     $55,000

C) $50,000     $55,000

D) $51,000     $58,000

Reference no: EM131779972

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