Johnston Controls Began Operations in 2018 Using FIFO Inventory Methods

question 23

Essay

Johnston Controls began operations in 2018 using FIFO inventory methods. On January 1, 2019, management decided they should have chosen to use LIFO, as it more accurately reflects income. The beginning 2019 inventory using FIFO was $100,000. Under the LIFO method the beginning inventory would have been $120,000.
Required: Prepare the journal entry to record the change in accounting principle and discuss the required disclosures.

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Definitions:

Opportunistic What's-in-it-for-me

An attitude or approach where individuals prioritize their own interests and benefits in situations, often at the expense of others or long-term goals.

Leadership Style

The approach and method used by a leader to guide, motivate, and manage teams or organizations.

Self-benefit

Advantages or gains that accrue directly to an individual as a result of their actions or decisions.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire, motivate, and capture the followership of others through their charisma and persuasive talents.