A Firm Using FIFO Had a Beginning Inventory of $48,000

Multiple Choice

A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000, and a pretax income of $400,000.If it had used LIFO, its beginning inventory would have been $20,000, and its ending inventory would have been $16,000.From the information provided, one can conclude that:

A) quantities increased and prices decreased.
B) quantities decreased and prices increased.
C) prices increased but we cannot conclude what happened to quantities.
D) quantities decreased but we cannot conclude what happened to prices.
E) not enough information to reach a conclusion.