A retailing firm changed from LIFO to FIFO in 2014. Inventory valuations for the two methods appear below:
Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,choose the following:
1.The correct amount in the 2014 entry to record the accounting principle change
2.Whether the entry affects 2014 earnings or is recorded as an adjustment to retained earnings (RE)
3.The 2014 cost of goods sold

Question

A retailing firm changed from LIFO to FIFO in 2014. Inventory valuations for the two methods appear below:
  Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,choose the following:
1.The correct amount in the 2014 entry to record the accounting principle change
2.Whether the entry affects 2014 earnings or is recorded as an adjustment to retained earnings (RE)
3.The 2014 cost of goods sold

A Retailing Firm Changed from LIFO to FIFO in 2014