Pharoah Co$.$ decides at the beginning of $2025$ to adopt the FIFO method of inventory valuation. Pharoah had used the LIFO method

for financial reporting since its inception on January $1,2023,$ and had maintained records adequate to apply the FIFO method

retrospectively. Pharoah concluded that FIFO is the preferable inventory method because it reports the current cost of inventory on

the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost of goods sold.

Other information:

For each year presented, sales are $$2,770$ and operating expenses are $$930.$

Pharoah provides two years of financial statements. Earnings per share information is not required.