Question: E21.14 (LO 1) (Various Changes in PolicyInventory Methods) Following is the net income of Benchley Instrument AG, a private company, computed under the two inventory

E21.14 (LO 1) (Various Changes in Policy—Inventory Methods) Following is the net income of Benchley Instrument AG, a private company, computed under the two inventory methods using a periodic system.

FIFO Average-Cost 2022 €26,000 €23,000 2023 30,000 25,000 2024 29,000 27,000 2025 34,000 30,000 Instructions

(Ignore tax considerations.)

a. Assume that in 2025 Benchley decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2025, and show net income reported for 2022, 2023, 2024, and 2025.

b. Assume that in 2025 Benchley, which had been using the average-cost method since beginning operations in 2022, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2025, and show net income reported for 2022, 2023, 2024, and 2025.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting 11th Questions!

E21.14 (LO 1) (Various Changes in PolicyInventory Methods) Following is the net income of Benchley Instrument AG, a private company, computed under the two inventory methods using a periodic system....

Various Changes in PrincipleInventory Methods Below is the net income of Benchley Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. FIFO...

E22.7 (LO 1) (Various Changes in Principle-Inventory Methods) Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the three inventory methods using a...

2018 E22.7 (LO 1) (Various Changes in Principle-Inventory Methods) Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the three inventory methods using a...

Following is the net income of Benchley Instrument AG, a private company, computed under the two inventory methods using a periodic system. Instructions (Ignore tax considerations.) a. Assume that in...

Below is the net income of Benchley Instrument AG, a private company, computed under the two inventory methods using a periodic system. Instructions (Ignore tax considerations.) a. Assume that in...

Below is the net income of Nash Instrument AG, a private company, computed under the two inventory methods using a periodic system. FIFO Average Cost 2019 26,000 23,000 2020 32,000 25,500 2021 31,000...

(Various Changes in Policy-Inventory Methods) Pace Instrument Corp, a small company that follows ASPE, began operations on January 1, 2014, and uses a periodic inventory system. The following net...

Chapter 4Exercises 5, 8, 12, 17, and18 Problem 12 172 iStockphoto Variable Costing In 2012, the all-tube amplifier p r o d u ce d b y C l a u s e n Tu b e r e ce i ve d rave reviews and the company...