In 2019, Richard's Department Store changes its inventory method from FIFO to LIFO. Richard's uses the simplified LIFO method. Richard's year-end inventory under FIFO is as follows: 2018 - $300,000; 2019 - $350,000. The 2018 price index is 110% and the 2019 index is 120%. The 2019 layer is

A) $19,097.
B) $20,833.
C) $22,727.
D) $50,000.

C) $22,727.

Explanation:

to calculate the 2019 layer, I will first determine the value of the 2019 inventory using LIFO:

(2018 inventory / 2018 price index) + (2019 inventory - 2018 inventory) = ($300,000 / 1.1) + ($350,000 - $300,000) = $272,727 + $50,000 = $322,727

to determine the LIFO layer = adjusted 2019 inventory - 2018 inventory = $322,727 - $300,000 = $22,727

The LIFO layer represents the difference in cost of goods sold from the ending of one year to the next year.

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number