Richardson's Flower Depot Uses FIFO for Internal Reporting Purposes and LIFO

question 76

Essay

Richardson's Flower Depot uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2015, the following information was obtained from the inventory records:
Required:
1) Prepare the necessary entry to convert to LIFO at the end of 2015.
2) How much would Richardson's cost of goods sold differ in 2015 if it used FIFO for external reporting?

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Definitions:

Enlisted

A term referring to individuals who have voluntarily joined a military service.

Racial Restrictions

Laws or regulations that discriminate against individuals based on race, often affecting areas like housing, voting, and employment.

Interracial Social Mingling

The interaction and socialization among individuals from different racial backgrounds, promoting diversity and understanding.

French Society

The social structure, cultural norms, and collective identity of France and its people.