The management of Utrillo Instrument Ltd. had concluded, with the concurrence of its independent auditors, that results
Question:
The management of Utrillo Instrument Ltd. had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Utrillo changed its method of pricing inventory from FIFO to average-cost in 2019. Given below is the 5-year summary of income under FIFO and a schedule of what the inventories would be if stated on the average-cost method (amounts in millions, except earnings per share).
Instructions
Prepare comparative statements for the 5 years, assuming that Utrillo changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Utrillo Instruments started business in 2014. (All amounts except EPS are rounded up to the nearest yen.)
Step by Step Answer:
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield