Question: 27. In January, Stitch, Inc. adopted the dollar-value LIFO method of inventory valuation. At adoption, inventory was valued at $50,000. During the year, inventory increased

27. In January, Stitch, Inc. adopted the dollar-value LIFO method of inventory valuation. At adoption, inventory was valued at $50,000. During the year, inventory increased

$30,000 using base-year prices, and prices increased 10%.

The designated market value of Stitch’s inventory exceeded its cost at year-end. What amount of inventory should Stitch report in its year-end balance sheet?

a. $80,000

b. $83,000

c. $85,000

d. $88,000

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