a. Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2023. Show all workings b. Determine net income to be reported for 2020, 2021 and 2022, after giving effect to the change in accounting policy.

Q: Smart Company prepared its annual financial statements dated December 31, 2020. The company applies…

A: As per LC&NRV inventory valuation rule, closing inventory is to be valued at lower of cost or…

Q: Diderot Stores Inc., which uses the conventional retail inventory method, wishes to change to the…

A: Conventional retail inventory method is related upon the relationship between cost of product and…

Q: Final Inventory   2020   2021 FIFO   $580000   $ 672000 LIFO   550000   656000 Net Income (computed…

A: Ans. $ 129,4000

Q: Upon reviewing the draft of the financial statements for the year ended, December 31, 2022, Alocasia…

A: Following is the correct option.

Q: Richardson's Flower Depot uses FIFO for internal reporting purposes and LIFO for financial

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Q: Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted-average…

A: a.

Q: Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2023.

A: LIFO is the method which has been used by the company in determining the valuation of the goods and…

Q: The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: Volata Company began operations on January 1, 2023. In the second quarter of 2024, it adopted the…

A: The amount that remains after expenses, benefits, and taxes are subtracted from the earnings of a…

Q: In 2022, Maria Corporation changed its method of inventory pricing from LIFO to FIFO. Net income…

A: FIFO is the method for valuation of inventory under which ending inventory is valued on the basis of…

Q: 3. & 4. Determine the balance in retained earnings at January 1, 2020 as Fieri reported using FIFO…

A: Solution:- Given, Revenue = $390 mil Cost of goods sold FIFO = $39 mil ; Average = $54 mil…

Q: At the begining of 2020, Flynne Company decided to change from the LIFO to the FIFO inventory cost…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Sunland Inc. began operations on January 1, 2023, and uses the FIFO method of pricing inventory.…

A: Lets understand the basics.The first in first out method is one of the important methods of valuing…

Q: 1. What amount should be reported as the prelax cumulative effect of this accounting change? During…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. The…

Q: BTS, Inc. has adopted a new accounting system for measuring the value of its inventory from weighted…

A: Lets understand the basics. There are two types of changes happens in the accounting which are, (1)…

Q: Please Correct answer and Do not Give solution in image format

A: The Last In, First Out (LIFO) approach of inventory valuation in cost accounting makes the…

Q: During 2021, Colombo Company changed its inventory costing method from FIFO to weighted average…

A: Inventory is one of the important current asset of the business. Regular management and valuation of…

Q: In 2021, Wade Window and Glass changed its inventory method from FIFO to LIFO. Inventory at the end…

A: FIFO: In the First-in-First-Out method, items purchased initially are sold first. So, the value of…

Q: Carl Co. began operations in 2021. At the beginning of fiscal year 2023, Carl Co. decided to change…

A: The objective of the question is to determine the correct journal entry to record the change in…

Q: ane Company started operations on January 1, 2020, and has used the FIFO method of inventory…

A: The net income of the business that remains after the necessary dividends are distributed to…

Q: Pierce Ltd. (Pierce) decided to change the costing method for its inventory at its December 31,…

A: Inventories are valued as per the accounting and valuation method followed by the company. There are…

Q: Pyramid issued 50,000 $1 par, common shares for $230,000 when the business began, and there have…

A: A journal is made to record all business transactions. All the financial transactions are recorded…

Q: Pharoah Co. decides at the beginning of 2025 to adopt the FIFO method of inventory valuation.…

A: Answer image: The balance of retained earnings provided or reported under LIFO on December 31, 2021,…

Q: Required: 1. Restate the statement of earnings to reflect the valuation of the ending Inventory on…

A: Smart Company Statement of Earnings (LC & NRV Basis) For the Year Ended Dec 31, 2020 Sales…

Q: Indigo Department Store converted from the conventional retail method to the LIFO retail method on…

A: Computation of 2020 and 2021 Year End Inventories Under the Dollar Value LIFO Method Computation…

Q: net income of

A: To find the net income of 2021 presented as ,

Q: What pretax amount should be reported in the 2021 statemen of changes in equity as the cumulative…

A: Calculation of cumulative effect of change in accounting policy Year FIFO Weighted average effect…

Q: $ 35,000 7,300 4,500 $ 23,200 5,800 $ 17,400 $ 37,000 8,100 4,900 $ 24,000 6,000 $ 18,000 $ 39,000…

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

Q: n December 31, 2020, Zodiac Corporation appropriately changed its inventory costing method from FIFO…

A: Retained earning means the amount left in business after paying all expenses and dividend to…

Q: Cabinets for Less uses FIFO for internal reporting purposes and LIFO for financial and income tax…

A: The steps for converting from FIFO to LIFO will vary depending on the specific business and…

Q: Fog Gear Incorporated changed from LIFO to the FIFO inventory costin January 1, 2024. Inventory…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Required: Prepare a schedule showing the calculation of net income and earnings per share that…

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

Q: Required: Ignoring income tax considerations, prepare the entry to report this accounting change.…

A: LIFO is an inventory valuation method under which inventories which are purchased in last will be…

Q: In 2020, Gill's Company changed its inventory cost system from LIFO to FIFO. 1. This accounting…

A: FIFO is the inventory method which says that inventory purchased first in the business should be…

Q: Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: A. FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method…

A: Solution:- Introduction:- As per LIFO, Cost of goods sold is valued at latest price and closing…

Q: ease help me with section 3 and 4 During 2019 (its first year of operations) and 2020, Fieri Foods…

A: Retained earnings are the portion of the net income of an organization that is not paid out as…

Q: Sheridan Company began operations on January 1, 2023, and uses the average-cost method of pricing…

A: The first in first out method is one of the important methods of valuing inventory in which the…

Q: Cabinets for Less uses FIFO for internal reporting purposes and LIFO for financial and income tax…

A: LIFO reserve 2019=FIFO-LIFO=$78,650-68,500=$10,150

Q: The management of Tamarisk Company has asked its accounting department to describe the effect upon…

A: Change in accounting policies is any material change in the financial statement due to a change in…