Use the Following Information for

Multiple Choice

Use the following information for
Ely Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO.During the year, purchases were $600,000 and sales were $1,000,000.December 31 inventory at year-end prices was $126,500, and the price index was 110.
-What is Ely Company's gross profit?

A) $415,000.
B) $416,500.
C) $426,500.
D) $883,500.