d

solve the last part ( part D )

Pina Co. decides at the beginning of 2022 to adopt the FIFO method of inventory valuation. Pina had used the average-cost method for financial reporting since its inception on January 1, 2022, and had maintained records adequate to apply the FIFO method retrospectively. Pina concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the statement of financial position. The following table presents the effects of the change in accounting policy on inventory and cost of goods sold. Inventory Determined by Cost of Goods Sold Determined by Date LIFO Method FIFO Method LIFO Method FIFO Method January 1, 2020 $0 $0 $0 $0 December 31, 2020 110 90 750 770 December 31, 2021 200 260 940 860 December 31, 2022 320 400 1,150 1,130 Retained earnings reported under average-cost are as follows. Retained Earnings Balance December 31, 2020 $1,090 December 31, 2021 1,990 December 31, 2022 2,680 Other information: 1. For each year presented, sales are $2,770 and operating expenses are $930. 2. Pina provides two years of financial statements. Omit earnings per share. PINA CO. Income Statement For the Year Ended December 31 Average Cost 2020 2021 2022 Sales 2.770 $ 2.770 $ 2,770 Cost of Goods Sold V 750 940 i 1,150 i Operating Expenses 930 i 930 i 930 i Net Income /(Loss) $ 1090 $ 900 $ 690 are income statements under FIFO for 2020, 2021, and 2022. PINA CO. Income Statement For the Year Ended December 31 FIFO 2020 2021 2022 Sales $ 2,770 $ 2,770 $ 2,770 Cost of Goods Sold 770 860 i 1,130 i Operating Expenses 930 i 930 i 930 i Net Income /(Loss) $ 1070 $ 980 $ 710 (b) Your answer is correct. Prepare income statements reflecting the retrospective application of the accounting change from the average-cost method to the FIFO method for 2022 and 2021. PINA CO. Income Statement For the Year Ended December 31 2021 2022 Sales $ 2,770 $ 2,770 Cost of Goods Sold 860 i 1,130 i Operating Expenses 930 i 930 i Net Income / (Loss) $ 980 $ 710 e Textbook and Media Attempts: 1 of 3 used (d) Prepare comparative retained earnings statements for 2021 and 2022 under FIFO. 2021 2022 ed Earnings, January 1, as reported $ 1,090 $ V: Adjustment for Cumulative Effect of Applying New Acounting Method ed Earnings, January 1, as adjusted $ 1070 980 ed Earnings, December 31 $ $ e Textbook and Media Save for Later Last saved 11 minutes ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes