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Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different inventory costing methods ($ in
Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different inventory costing methods ($ in thousands).
FIFO Average Cost LIFO Pre-2023
Pre-2023 $ 2,900 $ 2,640 $ 2,380
2023 800 550 565
______________________
$ 3,700 $ 3,190 $ 2,945
Required: 1. Assume that Roberti Steel Company used FIFO before 2024, and then in 2024 decided to switch to average cost. Prepare the journal entry to record the change in accounting principle. (Ignore income tax effects.)
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