Whitman SA began operations on January 1, 2019, and uses the average-cost method of pricing inventory. Management
Question:
Whitman SA began operations on January 1, 2019, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2022. The following information is available for the years 2019–2021.
Instructions
a. Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2022.
b. Determine net income to be reported for 2019, 2020, and 2021, after giving effect to the change in accounting policy.
Transcribed Image Text:
Net Income Computed Using Average-Cost Method FIFO Method 2019 €16,000 €19,000 2020 18,000 21,000 2021 20,000 25,000
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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