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Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2022. Cost of goods sold for each year since the inception
Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2022. Cost of goods sold for each year since the inception of the company are as follows:
| FIFO | LIFO |
2020 | $200,000 | $180,000 |
2021 | 400,000 | 360,000 |
Required:
Ignoring income tax considerations, prepare the journal entry to report this accounting change.
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