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

Question 19

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Richardson's Flower Depot uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2017, the following information was obtained from the inventory records: Richardson's Flower Depot uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2017, the following information was obtained from the inventory records: 1) Prepare the necessary entry to convert to LIFO at the end of 2017. 2) How much would Richardson's cost of goods sold differ in 2017 if it used FIFO for external reporting? 1) Prepare the necessary entry to convert to LIFO at the end of 2017.
2) How much would Richardson's cost of goods sold differ in 2017 if it used FIFO for external reporting?

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