HAN HD Webcam HD Video Conferencing Search Textbook Solutions Cher X Nextcloud + ca/s/R6TY4LK4ZGtGbSW#pdfviewer 27 2021.pdf 07 Automatic Zoom : Problem #3 Houle Limited reported the following summarized annual data at the end of 2022: Sales revenue $3,500,000 Cost of goods sold* 1.700.000 Gross profit. 1,800,000 Operating expenses 1.200,000 Income before income tax $600.000 *Based on an ending Inventory of $420,000, using FIFO. The controller of the company is considering a switch from FIFO to average cost. He has determined that on an average cost basis, the ending inventory would have a value $320,000. Instructions (a) Restate the summary information on an average cost basis. (7 marks) (b) If you were the management of this business, would you support this change in policy? Why or why not? What criteria should be used when choosing which cost method should be used? (8 marks) 10h biste HAN HD Webcam HD Video Conferencing Search Textbook Solutions Cher X Nextcloud + ca/s/R6TY4LK4ZGtGbSW#pdfviewer 27 2021.pdf 07 Automatic Zoom : Problem #3 Houle Limited reported the following summarized annual data at the end of 2022: Sales revenue $3,500,000 Cost of goods sold* 1.700.000 Gross profit. 1,800,000 Operating expenses 1.200,000 Income before income tax $600.000 *Based on an ending Inventory of $420,000, using FIFO. The controller of the company is considering a switch from FIFO to average cost. He has determined that on an average cost basis, the ending inventory would have a value $320,000. Instructions (a) Restate the summary information on an average cost basis. (7 marks) (b) If you were the management of this business, would you support this change in policy? Why or why not? What criteria should be used when choosing which cost method should be used? (8 marks) 10h biste