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If the LIFO Reserve Increases During the Year, and Inventory

Question 31

Multiple Choice

If the LIFO reserve increases during the year, and inventory costs are increasing, ________.


A) cost of goods sold will be higher under FIFO than LIFO
B) cost of goods sold will be higher under LIFO than FIFO
C) the journal entry will debit LIFO Reserve
D) the journal entry will credit Cost of Goods Sold

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