Green Corporation Uses the FIFO Method for Internal Reporting Purposes

Multiple Choice

Green Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes.The balance in the LIFO Reserve account at the end of 2007 was $80,000.The balance in the same account at the end of 2008 is $120,000.Green's Cost of Goods Sold account has a balance of $600,000 from sales transactions recorded during the year.What amount should Green report as Cost of Goods Sold in the 2008 income statement?

A) $560,000.
B) $600,000.
C) $640,000.
D) $720,000.