Macintosh Inc $$\begin{array} { c c c } & \text { FIFO } & \text { LIFO } \\2007 & \$ 200,000 & \$ 180,000 \\2008 & 400,000 & 360,000\end{array}$$

question 67

Essay

Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2009.
Inventory values at the end of each year since the inception of the company are as follows:
Required:
Ignoring income tax considerations, prepare the entry to report this accounting change.
$$\begin{array} { c c c } & \text { FIFO } & \text { LIFO } \\2007 & \$ 200,000 & \$ 180,000 \\2008 & 400,000 & 360,000\end{array}$$

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Definitions:

Portfolio Analysis

A systematic process of evaluating the elements of a portfolio, assessing their performance, risk, and interrelations, to inform strategic decisions and optimize returns.

Spend Map

A visual representation that depicts an organization's expenditure across different departments, suppliers, or categories, often used to identify cost-saving opportunities.

Multiple Sourcing

The strategy of procuring a particular product or service from more than one supplier in order to reduce dependency on any single source and increase reliability and competitiveness.

Bottleneck Items

Items or stages in a process that significantly delay production or throughput due to their limited capacity or efficiency.