On December 31, 2020 Mega Nhon Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2020 beginning inventory to increase by ₱630,000. The cumulative effect of this accounting change to be reported for the year ended 12/31/13, assuming a 40% tax rate, is ₱630,000 ₱252,000 ₱378,000 ₱0
On December 31, 2020 Mega Nhon Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2020 beginning inventory to increase by ₱630,000. The cumulative effect of this accounting change to be reported for the year ended 12/31/13, assuming a 40% tax rate, is ₱630,000 ₱252,000 ₱378,000 ₱0
Chapter10: Inventory
Section: Chapter Questions
Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...
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On December 31, 2020 Mega Nhon Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2020 beginning inventory to increase by ₱630,000. The cumulative effect of this accounting change to be reported for the year ended 12/31/13, assuming a 40% tax rate, is
-
- ₱630,000 ₱252,000
- ₱378,000 ₱0
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