Chapter 20, Problem 1CCTC

(1)

To determine

Change in inventory method

Change in inventory method means the change in present method of inventory valuation to another method of inventory valuation. Examples are changing from average method to First In First out (FIFO) method or to Last In First out (LIFO).

To disclose: the method, Corporation T used to report most of its inventory and steps taken to report the changes in inventory method.

(2)

To determine

To report: The steps Corporation T would take to account for the change in inventory method from First in First out (FIFO) to Last in First out (LIFO).