Question
Cheyenne, Inc. began operations on January 1, 2015, and uses the average cost method of pricing inventory. Management is considering changing inventory methods for 2018.
Cheyenne, Inc. began operations on January 1, 2015, and uses the average cost method of pricing inventory. Management is considering changing inventory methods for 2018. The following information is available for the years 20152017.
Net Income Computed Using | ||||||
---|---|---|---|---|---|---|
Average Cost | FIFO | LIFO | ||||
2015 | $72,600 | $75,900 | $68,200 | |||
2016 | 103,800 | 106,900 | 100,900 | |||
2017 | 115,450 | 118,900 | 112,000 |
(a)
Your answer is partially correct.
Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
eTextbook and Media
List of Accounts
Attempts: unlimited
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started