Chapter 20, Problem 20.3BE

Change in inventory methods; FIFO method to the LIFO method

• LO20–3

In 2018, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method. At December 31, 2017, J J’s inventories were $96 million (FIFO). J J’s records were insufficient to determine what inventories would have totaled if determined on a LIFO cost basis. Briefly describe the steps J J should take to report the change.