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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.

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