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AP® Human Geography

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Moderate

Inventory Cost Flow - LIFO

FINACT-PVPIYC

During the month of April 2014, Stadler, Inc. had the following information related to its Inventory account:

Date Description
4/1 Beg. Bal. 300 units @ \$247 each
4/16 Purchased 500 units @ \$259 each
4/23 Sold 600 units @ \$349 each

If Stadler values its inventory using the perpetual LIFO method, what would be the impact of these transactions on its reported income (before tax) for the month of April 2014?

A

\$24,700

B

\$55,100

C

\$129,500

D

\$154,200

E

\$209,400

F

\$366,300