1

Exercise 9-24 Change In Inventory costing methods [LO9-6) Goddard Company has used the FIFO method of inventory valuation since it began operations in 2015. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2018. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year 2015 2016 2017 FIFO $46,898 81.990 87,898 Average cost $56,898 72.000 8 1, eee Required: 1. Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method. 2. How much higher or lower would cost of goods sold be in the 2017 revised income statement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the adjustment necessary to reflect the average cost method. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Exercise 9-24 Change In Inventory costing methods [LO9-6] Goddard Company has used the FIFO method of inventory valuation since it began operations in 2015. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2018. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year 2015 2016 2017 FIFO $46.eee 81,800 87.890 Average Cost $56, ese 72,898 81,000 Required: 1. Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method. 2. How much higher or lower would cost of goods sold be in the 2017 revised income statement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much higher or lower would cost of goods sold be in the 2017 revised income statement? Cost of goods sold for 2017 would be in the revised income statement