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During 2021, Colombo Company changed its inventory costing method from FIFO to weighted average method. Inventory balances were as follows:                                        FIFO              Weighted Ave. As of January 1          7,200,000             7,700,000 As at December 31   7,900,000              8,300,000 Ignoring income tax, what is the amount of the effect of the accounting change in the statement of changes in equity for 2021? a. 900,000 b. 600,000 c. 500,000 d. 400,000

During 2021, Colombo Company changed its inventory costing method from FIFO to weighted average method. Inventory balances were as follows:                                        FIFO              Weighted Ave. As of January 1          7,200,000             7,700,000 As at December 31   7,900,000              8,300,000 Ignoring income tax, what is the amount of the effect of the accounting change in the statement of changes in equity for 2021? a. 900,000 b. 600,000 c. 500,000 d. 400,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 14EA: If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance...
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During 2021, Colombo Company changed its inventory costing method from FIFO to weighted average method. Inventory balances were as follows:

                                       FIFO              Weighted Ave.

As of January 1          7,200,000             7,700,000

As at December 31   7,900,000              8,300,000

Ignoring income tax, what is the amount of the effect of the accounting change in the statement of changes in equity for 2021?

a. 900,000
b. 600,000
c. 500,000
d. 400,000
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