How do you convert LIFO inventory to FIFO inventory according to the chapter?

To convert LIFO inventory to FIFO inventory, the entire LIFO reserve must be added back to the LIFO inventory amount.

The conversion from LIFO to FIFO involves adjusting the reported inventory value by adding the LIFO reserve, which is the difference between the LIFO and FIFO inventory valuations. In this case, the LIFO reserve is $600,000 plus an additional $70,000, totaling $670,000 that needs to be added back to the LIFO inventory to arrive at the FIFO inventory value.