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Hi there,
the solution you provide in make adjustment from LIFO to FIFO is wrong
because when price go down FIFO inventory increace and be highr than LIFO inventory
is this right? 
1 answers ( 0 marked as helpful)
Yes, that's correct! When prices are decreasing, the FIFO (First-In, First-Out) method will result in a higher inventory value compared to the LIFO (Last-In, First-Out) method.
Here's why:
FIFO assumes that the oldest inventory items are sold first, so when prices are decreasing, the older, higher-cost items are sold first, and the newer, lower-cost items are left in inventory. This means that the inventory value will be higher under FIFO.
On the other hand, LIFO assumes that the newest inventory items are sold first, so when prices are decreasing, the newer, lower-cost items are sold first, and the older, higher-cost items are left in inventory. This means that the inventory value will be lower under LIFO.
So, when prices are decreasing, FIFO will result in a higher inventory value, and LIFO will result in a lower inventory values
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