Randall Corp

Multiple Choice

Randall Corp. began operations on January 1, 2019, and uses FIFO to cost its inventory. Management is contemplating a change to the average cost method and is interested in determining what effect such a change will have on pre-tax income. Accordingly, the following information has been developed: Based upon the above information, a change to the average cost method in 2020 would result in pre-tax income for 2020 of

A) $ 790,000.
B) $ 860,000.
C) $ 940,000.
D) $ 980,000.