A Conservative Company Experiencing Rapid Price Increases for Its Products

Multiple Choice

A conservative company experiencing rapid price increases for its products would use LIFO to try to:

A) Allow the inventory that was just purchased at a higher price to be moved to cost of goods sold, showing a lower net income.
B) Allow the inventory that was just purchased at a higher price to remain in ending inventory values and move older inventory to cost of goods sold, showing a higher net income.
C) Allow the inventory that was just purchased at a lower price to remain in ending inventory values and move older inventory to cost of goods sold, showing a lower net income.
D) Allow the inventory that was just purchased at a lower price to be moved to cost of goods sold, showing a higher net income.