Blue Devil Inc. uses the LIFO inventory costing method for both tax reporting and financial reporting purposes.  Blue Devil’s inventories are reported at $50 million on its balance sheet.  In its footnotes, Blue Devil is required to report the amount at which inventories would have been reported under FIFO method. The difference between these two numbers is referred to as what? Group of answer choices LIFO holding gain LCM disclosures LIFO reserve LIFO liquidation

Q: 5. During 2020 an entity decided to change from the FIFO method of inventory valuation to the…

A: solution concept The undervaluation of the closing inventory in 2017 using FIFO method will have no…

Q: On December 31, 2017, Paiva, Inc. appropriately changed its inventory valuation method to…

A: When there is a change in accounting policy or method of calculation of inventory then the amount of…

Q: Sheffield Inc. reported total assets of $6407000 and net income of $505000 for the current year.…

A: Total assets:- Total assets are defined as the assets which includes all the assets or items of…

Q: Below is the net income of New Girl Instrument AG, a private company, computed under the two…

A: Weighted average method is a method of inventory valuation where unit cost of goods available is…

Q: During 2022, Bamboo Inc. decided to change from FIFO method of inventory valuation to the weighted…

A: The FIFO method implies that the inventory first purchased is to be sold first.  The weighted…

Q: Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be…

A: Product Ending Inventory (Qo) Unit Price ($) Po x Qo P1 x Qo Beginning (Po) Ending (P1) A 500…

Q: 3. & 4. Determine the balance in retained earnings at January 1, 2020 as Fieri reported using FIFO…

A: Solution:- Given, Revenue = $390 mil Cost of goods sold FIFO = $39 mil ; Average = $54 mil…

Q: Shondee Corporation uses the lower of cost or market and FIFO inventory methods. At the end of 2019,…

A: Income per year = (Value under FIFO Method - Value Under Cost Method) / No.of year

Q: Below is the net income of New Girl Instrument AG, a private company, computed under the two…

A: Inventory valuation includes the methods by which the inventory is valued when it is purchased and…

Q: During 2022, Emerald Inc. decided to change from FIFO method of inventory valuation to the weighted…

A: Retained earnings- Retained earnings are the accumulated portion of a company's income in a fiscal…

Q: R Limited has traditionally valued its inventory using the weighted average method of valuation.…

A: "FIFO" stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold…

Q: A reconciliation of pretax financial statement income to taxable income is shown below for Chan Inc.…

A: Deferred  Tax Asset/liability: A deferred tax asset arises  from overpayment or advance payment of…

Q: During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  Prepare the journal entry at the beginning of 2013…

Q: Megall Company began operations on Jan. 1, YR1. For tax purposes, Megall has always used FIFO method…

A: In the context of the given question, we are required to prepare journal entries and comment on the…

Q: Kante Company uses periodic FIFO for its internal report and periodic LIFO for its external reports.…

A: Calculate pretax income (LIFO) would Kante reports in external reports as show:

Q: FTC Company had used the FIFO method of inventory valuation since it began operations in 2016. The…

A: Solution: Change of inventory method from FIFO to weighted average do not have any impact on 2019…

Q: (Accounting Change) Presented below are income statements prepared on a LIFO and FIFO basis for…

A:

Q: (Various Changes in Principle—Inventory Methods) Below is the net income of Anita Ferreri Instrument…

A: First-in-First-Out (FIFO):   In First-in-First-Out method, the costs of the initially purchased…

Q: Richelle Company adapted the following changes during 2022: • Appropriately changed to the FIFO cost…

A: The given changes are required to adjust retained earnings opening balance. These changes in…

Q: Ibri Company decided in in 31-12-2020 to change from FIFO to Weighted average inventory pricing. The…

A: The Income tax is described as the amount which is charged by the tax authorities on the amount of…

Q: Year End 2016 (Ghs) 2017 (Ghs) 2018 (Ghs) Cost of sales 830,000 904,000 968,000 Profit after…

A: As it is clearly visible from the question that FIFO has increased the ending value on inventory,…

Q: Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for…

A: Financial statements consists of the following:- Statement of Financial position; Income Statement;…

Q: In 2017 the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the…

A:

Q: The ABC sole proprietorship deals with the trade of IT items and the provision of related services.…

A: Adjusting Journal Entry The purpose preparing the adjusting journal entry to include all the…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: Last in First out (LIFO) is one of the inventory valuation methods in which the latest inventory…

Q: Pomelo Company has the policy of valuing inventory at the lower of cost and net realizable value…

A: Balance in Allowance to reduce inventory to NRV account at December 31, 2021 before adjustment =…

Q: Required information [The following information applies to the questions displayed below.] ATW…

A: FIFO LIFO Beginning inventory $8,000,000 $7,000,000 Ending inventory $7,000,000 $5,500,000

Q: Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the…

A:

Q: Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for…

A: Inventory costing method:The costing method that is used to record the cost of goods sold, and…

Q: During 2020, a parent 'sold' inventory priced at $10500 to its subsidiary. The parent's cost of…

A: Inventories are the items that are kept by the business with an intention of further manufacturing…

Q: In its year 3 financial statements, what amount should Mayorca report as the gain or loss on the…

A: Weighted average balance = ending - beginning  = 83000-77000 =6000

Q: In its 2021 statement of retained earnings, what amount should Tricky report as the effect of this…

A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors A change in inventory…

Q: During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing…

A: Part 1:

Q: Kroger reported net earnings of $1,728 million in its fiscal year 2014 income statement. Assuming a…

A: Inventory valuation refers to a technique that is used to find out the value of the ending…

Q: On December 31, 2020 Mega Nhon Company changed its method of accounting for inventory from weighted…

A: Basic Closing inventory increase the gross profit which in turn increase the net profit.  Tax is…

Q: You are looking into the accounts of a company that has presented using LIFO for inventory.  You see…

A: LIFO Reserve is the measurement of the difference between the FIFO and LIFO cost of inventory.

Q: During 2020, a parent 'sold' inventory priced at $15000 to its subsidiary. The parent's cost of…

A: Intercompany profit = Sale value of Inventory - Cost of goods = $15000 - $8000 = $7000

Q: Pomelo Company has the policy of valuing inventory at the lower of cost and net realizable value…

A: Inventory is one of the important current asset of the business. Mostly all businesses prefer to…

Q: During 2020, an entity decided to change from the FIFO method of inventory valuation to the weighted…

A: Statement of changes in retained earnings shows the net profit earned during the year, if the…

Q: had used the FIFO method of inventory valuation since it began operations in 2017 CPA Co. decided to…

A: Answer -    Working Note : Particulars Amount FIFO inventory- 2019 8,300,000 Weighted average…

Q: Kiko Company has the policy of valuing inventory at the lower of cost and net realizable value using…

A: Net realisable value is the replacement value of the inventory that can be received from selling the…

Q: During 2010, Orca Corp. decided to change from the FIFO method of inventory valuation to the…

A: Inventory methods: Inventory methods are the accounting techniques used to evaluate the cost of…

Q: Petra Company uses the average-cost inventory method. Its 2020 ending inventory was $80,000, but it…

A: Weighted average method and FIFO methods are two inventory valuation methods. Under weighted average…

Q: The following is the detail of the purchase and sale of inventory of a product of Simco Co. May 1…

A: LIFO: In Last-in-first-out it is assumed that the last purchased item will be sold first. So, the…

Q: On December 31, 2021, BLACK MAMBA Company appropriately changed its inventory valuation method to…

A: Introduction: A corporation's income statement details its performance over a specific time period,…

Q: During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing…

A: The income statement is one of the important financial statement of the business which is prepared…

Q: Vaughn Inc. reported total assets of $6407000 and net income of $505000 for the current year. Vaughn…

A:

Q: On January 2, 2022, TITAN Company changed its inventory cost flow method to FIFO from average for…

A: As the question specified ignoring income taxes. The cumulative effect on retained earnings will…