Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January

Question

Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2013. Inventory values at the end of each year since the inception of the company are as follows:

                                                FIFO                       LIFO

2011                                       $200,000              $180,000

2012                                       400,000               360,000

Required:

Ignoring income tax considerations, prepare the entry to report this accounting change.

Explanation / Answer

Changing of inventory valuation from LIFO to FIFO is handled retrospectively

Journal entry will be:

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.