Sunland Inc. began operations on January 1, 2023, and uses the FIFO method of pricing inventory. Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025: 2023 2024 2025 (a) Net Income Computed Using: FIFO Method $121,000 84,000 + 168,000 Average-Cost Method $108,000 70,000 156,000 LIFO Method $79,000 50,000 130,000 Prepare the journal entry necessary to record a change from the FIFO method to the average cost method in 2026. (Ignore tax considerations) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry) Account Titles and Explanation Debit Credit
Sunland Inc. began operations on January 1, 2023, and uses the FIFO method of pricing inventory. Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025: 2023 2024 2025 (a) Net Income Computed Using: FIFO Method $121,000 84,000 + 168,000 Average-Cost Method $108,000 70,000 156,000 LIFO Method $79,000 50,000 130,000 Prepare the journal entry necessary to record a change from the FIFO method to the average cost method in 2026. (Ignore tax considerations) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry) Account Titles and Explanation Debit Credit
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 72BPSB: ( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019....
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