Solution-Determine the net income to be reported

Determine the net income to be reported

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Question - Coolangatta Corporation began operations on January 1, 2015, and uses the FIFO method of pricing inventory. The company is considering a change in inventory methods for 2018. The following information is available for 2015-2017.

	Net Income Computed Using
	Average Cost	FIFO	LIFO
2015	$15,000	$19,000	$11,000
2016	18,000	22,000	14,000
2017	21,000	25,000	20,000

Instructions -

1. Prepare the journal entry necessary to record a change from the FIFO method to the LIFO method in 2018.

2. Determine the net income to be reported for 2015, 2016 and 2017, after the change to the LIFO method in 2018.

Reference no: EM132532416

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Determine the net income to be reported

Reference no: EM132532416

Reference no: EM132532416

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