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During 2 0 2 2 ( its first year of operations ) and 2 0 2 3 , Fieri Foods used the FIFO inventory costing
During its first year of operations and Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of Fieri decided to change to the average method for both financial reporting and tax purposes.
Income components before income tax for and were as follows:
$ in millions
Revenues $ $ $
Cost of goods sold FIFO
Cost of goods sold average
Operating expenses
Dividends of $ million were paid each year. Fieris fiscal year ends December
Required:
& Determine the balance in retained earnings at January as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January using average method instead of FIFO method.
retained earningd balance previously reported using fifo jan
adjustment to balance for change in inventory methods
retained earnings balance using average method, jan
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