Question
Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2022. Cost of goods sold for each year since the inception
Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2022. Cost of goods sold for each year since the inception of the company are as follows:
|
| FIFO | LIFO |
| 2020 | $200,000 | $180,000 |
| 2021 | 400,000 | 360,000 |
Required:
Ignoring income tax considerations, prepare the journal entry to report this accounting change.
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
Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
