FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method during 2020: FIFO Weighted Average January 1, 2020 inventory 4,000,000 4,500,000 December 31, 2020 inventory 4,800,000 5,100,000 Required: Ignoring income taxes, 1. Prepare the journal entry to adjust the 2020 opening balance of retained earnings ac-count. 2. Determine the net income under the weighted average method assuming that the net income under FIFO was determined to be P900,000.

Q: Berkshire Inc. uses a periodic inventory system. At the end of 2020, it missed counting some…

A: Periodic inventory system is an inventory system under which all purchase and sale of inventories…

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: Diderot Stores Inc., which uses the conventional retail inventory method, wishes to change to the…

A: Conventional retail inventory method is related upon the relationship between cost of product and…

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: Purple company had determined its December 31, 2019 inventory on a FIFO basis at P200,000.…

A: Stock is to be valued at cost or net realizable value which every is lower. Prudence concepts says…

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: On December 31, 2021 Carla Vista Company changed its method of accounting for inventory from…

A: An increase in beginning inventory due to a change in the method of inventory decreases the profit.…

Q: At the beginning of current year, Black Company changed the inventory cost flow method to FIFO from…

A: The increase in beginning inventory increases the cost of goods sold and increase in ending…

Q: During 2020, Ethel Company appropriately changed to the FIFO method from the weighted average method…

A: Solution: - The change in inventory valuation method will result in a $2,000,000 increase in the…

Q: During 2021, WMC Corporation discovered that its ending inventories reported on its financial…

A: Inventory can be defined as: Stock of raw material held for production into final products. Stock…

Q: ndi Khough Alam Corporation appropriately changed its inventory costing method from FIFO cost to…

A: Impact of change in the evaluating of Inventory from FIFO to Weighted Average.

Q: Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No.…

A: LCNRV refers to the method where the carrying value of the inventory is determined by comparing the…

Q: During 2021, Colombo Company changed its inventory costing method from FIFO to weighted average…

A: Inventory is one of the important current asset of the business. Regular management and valuation of…

Q: Oriole Corporation had the following items in inventory as at December 31, 2020: Item No.…

A: Direct Method : In Direct method the business will charge the inventory write-off to COGS account.…

Q: Rockets Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2021. Inventory…

A: LIFO is that inventory valuation method under which inventories which are purchased in last will be…

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

A: FIFO Method: The accounting system known as "First In, First Out" (FIFO) requires that the assets…

Q: In 2020 ABC Co. decided to change to the FIFO method for inventory. The Cost of Goods Sold in 1919…

A: In the year 2019. Under LIFO, The cost of goods sold is $300,000 Under FIFO The cost of goods sold…

Q: Holder-Webb Company began operations on January 1, 2018, and uses the average-cost method of pricing…

A: Given Data:

Q: On December 31, 2020, Fire Corporation appropriately changed its inventory costing method from FIFO…

A: Inventory costing methods can be of various types such as FIFO, LIFO, weighted average etc. The…

Q: n December 31, 2020, Zodiac Corporation appropriately changed its inventory costing method from FIFO…

A: Retained earning means the amount left in business after paying all expenses and dividend to…

Q: In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: The question is based on the concept of Journal Entry.

Q: In 2020, Gill's Company changed its inventory cost system from LIFO to FIFO. 1. This accounting…

A: FIFO is the inventory method which says that inventory purchased first in the business should be…

Q: In 2022, Kimberly Corporation changed its method of inventory pricing from LIFO to FIFO. Net income…

A: Explanation: If the company changed its method of inventory pricing from LIFO to FIFO, then the net…

Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…

A: The monetary amount associated with the goods in inventory at the end of an accounting period is…

Q: Assume prices were stable during the period. The following values were obtained from the inventory…

A: LIFO method: The LIFO strategy works under the presumption that the last item of stock acquired, is…

Q: A. FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method…

A: Solution:- Introduction:- As per LIFO, Cost of goods sold is valued at latest price and closing…

Q: As a result of its annual inventory count, Bridgeport Corp. determined its ending inventory at cost…

A: Inventory can be referred to as the assets which are held by an entity for the purpose of re sale or…

Q: At December 31, 2020, Sandhill’s Mercantile has Cost of Goods Sold of $50800 before adjusting…

A: Adjusted cost of goods sold = Reported cost of goods sold + decreased value of inventory

Q: A. While examining the December 31, 2020 financial statements of Don Co., you discover the fol-…

A: 1) overstated opening inventory reduce net income, so we need to aad it back.  2) understated…

Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…

A: PLEASE GIVE A LIKE, your response matters     THREE MONTHS ENDED June 30.    AMOUNT IN $  2019…

Q: Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2021. Inventory…

A: Increase (decrease) in inventory = Ending Inventory as per FIFO - Ending Inventory as per LIFO  =…

Q: During 2021, WMC Corporation discovered that its ending inventories reported on its financial…

A: 1. The effects of inventory error of understated ending inventory of $120,000 in 2019.   In the year…

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: On December 31, 2021, ECHO Company appropriately changed its inventory valuation method to the FIFO…

A: Solution Introduction When there is change in the accounting method the effect of the change shall…

Q: 3. How much is the cumulative effect of this change that should be reported in the income statement…

A: The question is related to Change in Accounting Policy. Accounting Policy are the principles and…

Q: On December 31, 2020, Healy, Inc. appropriately changed its inventory valuation method to FIFO cost…

A: Change in inventory valuation will result increase in beginning inventory of $ 500000

Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…

A: Earnings per share is the ratio of total earnings to the total number of shares iutstanding.

Q: In 2020 Fy Co. decided to change to the FIFO method for inventory . The Cost of Goods Sold in 1919…

A: Introduction: First-in, first-out (FIFO) is a method for valuing inventories and calculating the…

Q: Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No.…

A: The lower of cost and market value needs to be computed for each item of the inventry

Q: Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No.…

A: Under periodic inventory system, updates to the inventory records are made on a periodic basis.…

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

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: thod during 2020: FIFO Weighted Average January 1, 2020 inventory 4,000,000 4,500,000 December 31,…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: *Note any error of 2019 ending inventory is carried over to 2020 as an error of the beginning…

A: Introduction:- The following are inventory valuation methods as follows under:- First-In, First-Out…

Q: Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018.…

A: Lets understand the basics. When there is change in closing stock valuation policy from onw method…

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…

Q: On December 31, 2020, Roseland Company experienced a decline in the value of inventory resulting in…

A: Cost of goods sold means how much cost of goods has been sold in the outside market.  Cost of goods…

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

A: First in first out is also written as FIFO. It is the method for valuing inventory on the assumption…

Q: What is the net effect of the errors in Bonghill’s December 31, 2020 accumulated profits balance?…

A: Financial statement: Financial statement can be defined as the statement prepared at the end of the…