Whitman SA began operations on January 1, 2016, and uses the average-cost method of pricing inventory. Management

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Whitman SA began operations on January 1, 2016, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2019. The following information is available for the years 2016-2018.

Instructions

(Ignore all tax effects.)

a. Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2019.

b. Determine net income to be reported for 2016, 2017, and 2018, after giving effect to the change in accounting policy.

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Related Book For book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Sep 21, 2024 05:14 AM

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Whitman SA began operations on January 1, 2016, and uses the average-cost method of pricing inventory. Management

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Intermediate Accounting IFRS

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