AEP Industries Inc. is a leading manufacturer of plastic packing films. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The following disclosure note was included in a recent quarterly report: 4. Inventories (in part) Inventories are comprised of the following (S in thousands): January 31, 2016 $ 50,883 95,483 October 31, 2015 $ 49,467 85,363 Raw materials Finished goods Supplies (21,428) Less: LIFO reserve Inventaries (under LIFO) (17,394) $135,037 $119,924 The company's income statements reported cost of goods sold of $214,826 thousand for the quarter ended January 31, 2016. Required: 1. Assume that AEP adjusts the UFO reserve at the end of its quarter. Prepare the January 31, 2016, adjusting entry to record the cost of goods sold adjustment. 2. If AEP had used FIFO to value its inventories, what would cost of goods sold have been for the quarter ended January 31, 2016? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that AEP adjusts the LIFO reserve at the end of its quarter. Prepare the January 31, 2016, adjusting entry to record the cost of goods sold adjustment. If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in thousands.) View transaction list Journal entry worksheet Record the cost of goods sold adjustment for the LIFO reserve