Smith company uses fifo in its internal inventory and adopted dollar value LIFO on December 31 2011 with a base inventory 207000.

year end cost

cost index

2012 ending inventory

225,750

1.05

2013 ending inventory

226,840

1.06

1. What amount would smith report of inventory under DV LIFO on 2012 balance sheet
2. As the firm changes from fifo to dollar value, how much is the account effected for 2012

Inventory increase or decrease or no change by how much

COGS same

1. Provide journal entry for 12/31/2013 as firm converts from fifo to dollar value