Question

Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2021. Inventory values at the end of each year since the inception of the company are as follows: FIFO LIFO 2019 $ 190,000 $ 175,000 2020 380,000 350,000 Required: Ignoring income tax considerations, prepare the entry to report this accounting change.

Answer 1

Answer:

the entry to report this accounting change is in the attachment.

Explanation:

By moving from LIFO to FIFO, there's is going to be an increase in the value of inventory from of 30,000. That is $380,000 - $350,000.

The answer to this question is to make a journal entry. I have done this in the attachment.