Read Appendix 9-1. Referring to Exhibit 9-14 and related notes, assume instead that Toyozas inventories were costed

Question:

Read Appendix 9-1. Referring to Exhibit 9-14 and related notes, assume instead that Toyoza’s inventories were costed using the FIFO method and that Lincoln Enterprises employed the LIFO method. Provide the adjusting journal entries to restate Toyoza’s inventories to a LIFO basis, assuming that ending inventories would have been \250 million lower under the LIFO method.