The following information can be found in ABC Co.'s financial statements. 2006 2005 Finished Goods $251,690 $195,360 Work in Process and 245,124 17,377 purchased parts Raw Materials 136,568 106,789 Less excess of current cost 633,381 488,581 over stated LIFO value 62,951 71,186 $570,430 $417,395 Retained earnings $3,526,000 $3,159,000 Assume a tax rate of 35%. Inventories valued using the LIFO method represented approximately 80% of consolidated inventories. What will be the value of inventory for 2006 if ABC used FIFO valuation? 488,581 633,381 570,430 633,485
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