Carla Vista Company began operations on January 1, 2023, and uses the FIFO method in costing...

 

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Carla Vista Company began operations on January 1, 2023, 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 2023 2024 FIFO LIFO $295000 $335000 215000 275000 Net Income (computed under the FIFO method) 475000 725000 Based upon the above information (ignore income tax considerations), a change to the LIFO method in 2024 would result in net income for 2024 of Carla Vista Company began operations on January 1, 2023, 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 2023 2024 FIFO LIFO $295000 $335000 215000 275000 Net Income (computed under the FIFO method) 475000 725000 Based upon the above information (ignore income tax considerations), a change to the LIFO method in 2024 would result in net income for 2024 of