In 2020, TTS Co. decided to change from LIFO to FIFO. 

In 2019, the company's LIFO ending inventory was $400,000 and COGS was $660,000. Under FIFO, inventory would have been $382,000 and COGS $678,000. In 2020, LIFO ending inventory was $373,000 with COGS of $1,188,000. Under FIFO, inventory would have been $346,000 and COGS $1,197,000. 

If made at the end of 2020, what would the entry to switch methods? 

Answer rating: 100% (QA)

The entry to switch methods at the end of 2020 would be Debit Retained Earnings COGS Increase LIFO R... View the full answer