FTC Company had used the FIFO method of inventory valuation since it began operations in 2016. The entity de change to the weighted average method for measuring inventory at the beginning of 2019. The income tax rate The following schedule shows year-end inventory balances: Year FIFO Weighted Average 2016 P4,500,000 P5,400,000 2017 7,800,000 7,100,000 2018 8,300,000 7,800,000 What amount should be reported for 2019 as the cumulative effect of the change in accounting policy?
FTC Company had used the FIFO method of inventory valuation since it began operations in 2016. The entity de change to the weighted average method for measuring inventory at the beginning of 2019. The income tax rate The following schedule shows year-end inventory balances: Year FIFO Weighted Average 2016 P4,500,000 P5,400,000 2017 7,800,000 7,100,000 2018 8,300,000 7,800,000 What amount should be reported for 2019 as the cumulative effect of the change in accounting policy?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 3MC
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