Solution-Inventory balances under the fifo and average cost

Inventory balances under the fifo and average cost methods

Assignment Help Accounting Basics

Reference no: EM13882540

1. Goddard Company has used the FIFO method of inventory valuation since it began operations in 2010. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2013. The following schedule shows year end inventory balances under the FIFO and average cost methods:

993_270-B-A-V-I (1024).png

Required:
1. Ignoring income taxes, prepare the 2013 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 2012 revised incomestatement?

Reference no: EM13882540

Questions Cloud

How do emotions affect interpersonal communications : How do emotions affect interpersonal communications? Describe what obstacles an interviewer faces in dealing with the client's emotions. How should you assess the client's cultural considerations and their influence on the interview process

Health care organization''s merger or acquisition : From the e-Activity, distinguish the factors that are most important in carrying out a successful health care organization's merger or acquisition. Defend at least two (2) reasons why health care organization alliances are sometimes necessary.

Mechanism of natural selection : The female quetzal has short tail feathers. Using the quetzal as your example, describe how the mechanism of natural selection may have led to the evolution of the male quetzal's extraordinarily long tail feathers.

Identify how changes in the external environment : Identify how changes in the external environment may affect the OM strategy for a company. For example, what impact are the following factors likely to have on OM strategy?

Inventory balances under the fifo and average cost methods : The following schedule shows year end inventory balances under the FIFO and average cost methods:

Principle of specificity : Provide a concrete example of the principle of specificity to athletics/sports preparation, personal fitness training, or rehabilitation. Choose one exercise and explain why this exercise meets the goal(s) of the program.

How does a bank make a profit on loans : How does a bank make a profit on loans? Discuss the importance of loans in attracting a borrower's other business with a financial institution.

The united kingdom and the united states : Science Question Parliamentary and Presidential SystemsAs we turn our focus to the international realm, let's take a moment to compare the governmental systems of the United Kingdom and the United States.

Write a memo informing employees of the company policy : Write a memo informing employees of the company's policy regarding use of office equipment, including phones and the internet, for personal use. What disciplinary action will be taken if someone uses office equipment for personal matters? Make sure t..

User Account

All Pages

Inventory balances under the fifo and average cost methods

Reference no: EM13882540

Reference no: EM13882540

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT