Gordon Company started operations on January 1, 2015, and has used the FIFO method of inventory valuation since its inception. In 2021, it decides to switch to the average-cost method. You are provided with the following information.   Net Income Retained Earnings (Ending Balance)   Under FIFO Under Average-Cost Under FIFO 2015 $100,000 $  90,000 $100,000 2016     70,000     65,000   160,000 2017     90,000     80,000   235,000 2018   120,000   130,000   340,000 2019   300,000   290,000   590,000 2020   305,000   310,000   780,000 Instructions a.    What is the beginning retained earnings balance at January 1, 2017, if Gordon prepares comparative financial statements starting in 2017? b.    What is the beginning retained earnings balance at January 1, 2020, if Gordon prepares comparative financial statements starting in 2020? c.    What is the beginning retained earnings balance at January 1, 2021, if Gordon prepares single-period financial statements for 2021? d.    What is the net income reported by Gordon in the 2020 income statement if it prepares comparative financial statements starting with 2018?

Q: The following information is presented for Bramble Corporation. The net income errors in ending…

A: Inventory management involves keeping track of the goods, components, and raw materials that a…

Q: Presented below is information related to Nash Company. Date   Ending Inventory (End-of-Year…

A: Under dollar value LIFO method, the goods are taken collectively into the form of pools and then…

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

A: Introduction:- Calculation of the effect on January 1, 2022 inventory and on Retained Earnings as…

Q: At the beginning of 2016, a company adopts the dollar-value LIFO inventory method for its one…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

Q: A company's correct ending balance for the inventory account at the end of 2021 should be $5,000,…

A: Ending inventory of 2021 is understated by $2,000. This means beginning inventory of 2022 is also…

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

A: Calculate the changes in inventory value.

Q: Assume that the company had switched from the average cost method to the FIFO method with net income…

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

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

A:

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Dollar-Value-LIFO:  This method shows all the inventory figures at dollar price rather than units.…

Q: Midori Company had ending inventory at end-of-year prices of $100,000 at December 31, 2016; $119,900…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: BTS, Inc. has adopted a new accounting system for measuring the value of its inventory from weighted…

A: Lets understand the basics. There are two types of changes happens in the accounting which are, (1)…

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: 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: Marigold Company has used the dollar-value LIFO method for inventory cost determination for many…

A: Determine the amount of change in base price.

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: Sunland Company had the following inventory transactions occur during 2022:         Units…

A:

Q: In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because…

A: Net Income:- The income statement reports the result of the operational performance of a firm i.e.…

Q: In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of2017…

A:

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: In 2018, Adonis Industries changed its method of valuing inventory from the average cost method to…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: Goddard Company has used the FIFO method of inventory valuation since it began operations in 2013.…

A: Method of Inventory: Inventory refers to the current assets that a company expects to sell during…

Q: Presented below is information related to Crane Company. Date   Ending Inventory (End-of-Year…

A: Date Ending Inventory(End-of-Year Prices) PriceIndex Inventory at base year price Change from the…

Q: The financial statements of ConAgra Foods, Inc.’s 2017 annual report disclose the following…

A: Inventory turnover = Cost of goods sold / Average inventory Where, Average inventory = (Beginning…

Q: MLM Bhd started operations on 1 January 2015 and has used the FIFO method of inventory valuation…

A: MFRS 108 - It defines prior period errors as"omissions from, and misstatements in the entity's…

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: Swifty Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was…

A: How the average cost will be calculated? Average cost= Total Cost of Goods soldNo of units available…

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: Mercury Company has only one inventory pool. On December 31, 2016, Mercury adopted the dollar-value…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

Q: In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because…

A: Computation of impact on Profit Cumulative impact on inventory on 12/31/2018 = $34,800 Tax on…

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: 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: On January 1, 2018, Devoe Company changed from the FIFO method to the average cost method to account…

A: Net Income: Net income (also consolidated income, net earnings, net profit, bottom line, sales…

Q: In 2016, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: Prepare journal entry

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: 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: 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: 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: Presented below is information related to Dino Radja Company.…

A: End of year prices and index price details are given. The ending inventory has to be computed using…

Q: During 2017, Windsor Inc. changed from LIFO to FIFO inventory pricing. Windsor began operations in…

A: Changing of Inventory Valuation Method From LIFO to FIFO is called Changes in Accounting principle .…