Required information (The following information applies to the questions displayed below.) Suppose that David has elected to account for inventories and has adopted the last-in, first-out (LIFO) inventory-flow method for his business inventory of widgets (purchase prices below). Widget #1 #2 #3 Purchase Date Direct Cost Other Costs Total Cost August 15 $ 2,100 $ 100 $ 2,200 October 30 2,200 150 2,350 November 10 2,300 100 2,400 In late December, David sold one widget, and next year David expects to purchase three more widgets at the following estimated prices: Estimated Widget Purchase Date Cost Early spring $ 2,600 Summer 2,260 Fall #4 #5 #6 2,400 d. Suppose that David initially adopted the LIFO method, but wants to apply for a change to FIFO next year. What would be his $481 adjustment for this change, and in what year(s) would he make the adjustment? FIFO David's $481 adjustment amount