Goddard Company has used the FIFO method of inventory valuation since it began operations in 2013. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2016. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year FIFO Average Cost 2013 $45,000 $54,000 2014 78,000 71,000 2015 83,000 78,000 Required: 1. Ignoring income taxes, prepare the 2016 journal entry to adjust the accounts to reflect the average cost method. 2. How much higher or lower would cost of goods sold be in the 2015 revised income statement?

Q: Sanborn Inc. is a new manufacturing company founded on February 2, 2012. The company had to choose…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception…

A:

Q: Sandhill, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3…

A: Last-in-First-Out: In Last-in-first-out method, the costs of last purchase items are considered as…

Q: he manager of a superior products ltd. is considering shifting from the weighted average cost method…

A: Solution: Computation of COGS and ending inventory - Periodic LIFO Particulars Cost of goods…

Q: In 2016, Adonis Industries changed its method of valuing inventory from the average cost method to…

A: Calculate the changes in inventory value.

Q: The following inventory valuation errors have been discovered for Knox Corporation: The 2015…

A: Inventory errors: It refers to the errors that result in overstatement or understatement of ending…

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

A: Given: - For 2018: Average cost method=$16,110 FIFO method=$18,880 LIFO method=$12,030 For 2019:…

Q: Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at…

A: a. Date Account Titles and Explanation Debit Credit December 31, 2015 Cost of goods…

Q: Kumar Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $214,000,000 at both…

A: Net realizable value:   Net realizable value is defined as the amount from the sale of asset after…

Q: Sugarbaker Designs, Inc., changed from the FIFO inventory costing method to the average cost method…

A:

Q: Cambi Company began operations on January 1, 2016. In the second quarter of 2017, it adopted the…

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Q: he Dormer Company uses the gross profit

A: 1. Calculation of cost of goods sold Sales = Cost of goods sold + Mark up(%) Mark up (%) = 50% of…

Q: Alster Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2015.…

A: Solution : Computation of inventory at base year prices and change from prior year - Alster…

Q: Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax…

A: 1. Prepare journal entry to record the change in value of inventory value.

Q: 1. How much is the profit for year 2015 had the weighted average method been used? 2. How much is…

A: The computation of profit for the year 2015 and 2016 when the weighted average method is used has…

Q: Shown below are net income amounts as they would be determined by Weihrich Steel Company by each of…

A: Change in accounting principle: This generally mean, the valuation principles of certain type of…

Q: Pierce Ltd. (Pierce) decided to change the costing method for its inventory at its December 31,…

A: Inventories are valued as per the accounting and valuation method followed by the company. There are…

Q: Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018…

A:

Q: Blossom Company uses a periodic inventory system. Details for the inventory account for the month of…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

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

A: Given Data:

Q: The following information was disclosed in the 2015 annual report of The Arcadia Company. Fill in…

A: Inventory available for sale is the total inventory held for sale which is the combination of…

Q: Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at…

A: c) Under both the methods, the same amount has been adjusted against either cost of goods sold /loss…

Q: Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception…

A: 1.

Q: Corrs Company began operations in 2016 and determined its ending inventory at cost and at…

A: Following is the answer to given question

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

A: First-in-First-Out (FIFO): In First-in-First-Out method, the cost of initial purchased items are…

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: Harlequin Co. has used the LIFO retail method since it began operations in early 2015 (its base…

A: Dollar value LIFO method is a process to calculate the cost of the inventory according to last in…

Q: Parker Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items.…

A: Formula: Net Realizable value per unit = Estimated selling price - Estimated selling expense…

Q: Kumar Inc. uses LIFO inventory costing. At January 1, 2017, inventory was $214,000 at both cost and…

A: Inventory: Inventory refers to the raw materials, work in progress, and finished goods that are held…

Q: The December 31, 2016, inventory of Tog Company, based on a physical count, was determined to be…

A:

Q: During 2017, Teal Mountain Inc. changed from LIFO to FIFO inventory pricing. Teal Mountain began…

A: Preparing the new income statement with a comparative figure is quite straightforward. Just replace…

Q: The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost…

A: 1.

Q: The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: The Reuschel Company began 2016 with inventory of 10,000 units at a cost of $7 per unit. During…

A: 1.The cost of goods sold under LIFO.

Q: The management of Blue Spruce Corp. is reevaluating the appropriateness of using its present…

A: Working note: Computation of value of ending inventory under FIFO and LIFO method:

Q: The December 31,2016 inventory of Gwynn Company consisted of three products, for which certain…

A: Introduction Net Realizable Value is the cash that compnay expects to receive at the end. As far as…

Q: As a result of taking a physical inventory count on December 31, 2016, the Mona Lisa Company…

A: Closing stock: It is the value of unsold goods at the end of an accounting period is termed as…

Q: During 2016, WMC Corporation discovered that its ending inventories reported in its financial…

A: 1.The effects of inventory error of understated ending inventory of $200,000 in 2014.In the year…

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: The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost…

A:

Q: In 2016, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2015…

A: Describe the steps that Company H should take to report this changeThe steps that Company H should…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.