Stores is considering a change in its inventory valuation method. The company currently uses the FIFO method and may want to change to the LIFO method. Inventory information for the current year follows.

Description	FIFO Cost	LIFO Cost
Beginning inventory: January 1	$14,800	$14,600
Ending inventory: December 31	$15,100	$6,150

Cost of goods sold under the LIFO basis is $33,500 for the current year. Eastern Stores would like to use LIFO for tax purposes but wants to be sure that its shareholders will be able to convert the LIFO financial statements to a FIFO basis. Provide Stores with an illustration of how financial statement users can convert LIFO to the FIFO basis.

Select the formula and then calculate the beginning and ending LIFO reserve amounts.

	????		???		LIFO reserve
Beginning	???	-	???	=	???
Ending	???	-	???	=	???

Part 2: Next select the formula and enter the amounts to determine the LIFO effect for Eastern Stores. (Use parentheses or a minus sign to enter a decrease in the LIFO reserve.)

???	-	???	=	LIFO effect
???	-	???	=	???

Now select the formula and enter the amounts to convert the cost of goods sold from LIFO to the FIFO basis for the financial statement users at Eastern Stores.

LIFO cost of goods sold		???
???	???????????????????	???
FIFO cost of goods sold		???