Apple Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2021. Costs of goods sold at the end of each year since the inception of the company are as follows: LIFO FIFO 2019 $200,000 $180,000 2020 400,000 360,000 Assume 2019 is the first year of operation. Ignoring income tax considerations, prepare the entry to report this accounting change on Jan 1, 2021: A) Inventory 60,000 Retained Earnings 60,000 B) Inventory 20,000 RE 20,000 C) Inventory 40,000 RE 40,000 D) No Entry is needed O A O B O D
Apple Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2021. Costs of goods sold at the end of each year since the inception of the company are as follows: LIFO FIFO 2019 $200,000 $180,000 2020 400,000 360,000 Assume 2019 is the first year of operation. Ignoring income tax considerations, prepare the entry to report this accounting change on Jan 1, 2021: A) Inventory 60,000 Retained Earnings 60,000 B) Inventory 20,000 RE 20,000 C) Inventory 40,000 RE 40,000 D) No Entry is needed O A O B O D
Chapter10: Inventory
Section: Chapter Questions
Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...
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