The conversion of a LIFO inventory to approximate the inventory at FIFO is accomplished through application of which one of the following formulas?

A) FIFO inventory = LIFO inventory × LIFO reserve
B) FIFO inventory = LIFO inventory ÷ LIFO reserve
C) FIFO inventory = LIFO inventory - LIFO reserve
D) FIFO inventory = LIFO inventory + LIFO reserve

LIFO Inventory

Last-In, First-Out, an inventory valuation method that assumes the last items added to inventory are the first sold, affecting the reported income and inventory value.

FIFO Inventory

FIFO Inventory, or First-In, First-Out, is an inventory valuation method where the goods first purchased or produced are the first to be sold.

LIFO Reserve

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