Rockwell Corporation uses a periodic Inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost m Beginning Inventory, FIFO (5,500 units @ $27) $ 148,500 Purchases: 5,500 units @ $33 5,500 units @ $37 Cost of goods available for sale Sales for 2018 (8,000 units @ $75) $ 181,500 203,500 385,000 S 533,500 $ 600,000 Additional Information: 1. The company's effective Income tax rate is 25% for all years. 2. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $126,500. 3. 8,500 units remained in inventory at the end of 2021. Required: 1. Jgnoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method.

Rockwell Corporation uses a periodic Inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost m Beginning Inventory, FIFO (5,500 units @ $27) $ 148,500 Purchases: 5,500 units @ $33 5,500 units @ $37 Cost of goods available for sale Sales for 2018 (8,000 units @ $75) $ 181,500 203,500 385,000 S 533,500 $ 600,000 Additional Information: 1. The company's effective Income tax rate is 25% for all years. 2. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $126,500. 3. 8,500 units remained in inventory at the end of 2021. Required: 1. Jgnoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method.

Name: SOLVE BOTH QUESTIONS Rockwell Corporation uses a periodic inventory sy
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Description: SOLVE BOTH QUESTIONS Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows:Begin

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA

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