Taveras Co$.$ decides at the beginning of $2020$ to adopt the FIFO method of inventory valuation. Taveras had used the LIFO method for

financial reporting since its inception on January $1,2018,$ and had maintained records adequate to apply the FIFO method

retrospectively. Taveras concluded that FIFO is the preferable inventory method because it reflects 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.

Income taxes are ignored.

Retained earnings reported under LIFO are as follows.