The Skone Corporation reported at the end of the year a LIFO reserve of $25,000.The beginning LIFO reserve was $20,000.The cost of goods sold was $197,500 under LIFO.The cost of goods sold under FIFO should be

A) $192,500.
B) $197,500.
C) $202,500.
D) $222,500.

LIFO Reserve

The difference between the cost of inventory calculated under the Last In, First Out (LIFO) method and its cost under the First In, First Out (FIFO) method.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.

FIFO Costs

First In, First Out, a cost flow assumption for inventory valuation where the oldest inventory items are recorded as sold first.