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Ditzler Enterprises reports externally using LIFO, but keeps its inventory records internally using FIFO. On January 1, its inventory was $101,000 measured using FIFC and $92,300 using LIFO. On December 31 of that year, its inventory was $127,000 using FIFO and $115,000 using LIFO. During the year Ditzler recorded cost of goods sold of $55,000 and purchased new inventory of $81,000. What is the balance in Ditzler's inventory and LIFO reserve accounts as of January 1? What is the balance in the inventory and LIFO reserve accounts as of December 31? What journal entry is required on December 31 to convert to LIFO? What is the LIFO effect for the year? What is the balance in Ditzler's inventory and LIFO reserve accounts as of January 1? Balance as of January 1 Inventory account using FIFO method Inventory account using LIFO method LIFO reserve What is the balance in Ditzler's inventory and LIFO reserve accounts as of December 31? Balance as of December 31 Inventory account using FIFO method Inventory account using LIFO method LIFO reserve Prepare the journal entry required on December 31 to convert to LIFO. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Year-end What is the LIFO effect for the year? The cost of goods sold account increases to S reduces ending inventory to the proper LIFO valuation of $ which reflects the use of the LIFO method. The LIFO reserve

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