Using the information provided in BE10- 11, prepare the journal entry required to adjust Todgren’s ending inventory from a FIFO to a dollar- value LIFO basis.
In BE10- 11 Todgren Incorporated adopted the dollar- value LIFO method last year. Last year’s ending inventory was $ 56,400, with a price index of 1.0. The ending inventory for the current year at year- end (FIFO) costs is $ 96,000 and the price index is 1.2. Based on this information, compute Todgren’s ending inventory for the current year on a dollar- value LIFO basis.