User Account

All Pages

What is the effect of the change in methods

Assignment Help Accounting Basics
Reference no: EM131000034

Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1976. In 2011, the company decided to switch to the average cost method. Data for 2011 are as follows:

Additional Information:

a. The company's effective income tax rate is 40% for all years.

b. If the company had used the average cost method prior to 2011, ending inventory for 2010 would have been $130,000.

c. 7,000 units remained in inventory at the end of 2011.

Required:

1. Ignoring income taxes, prepare the 2011 journal entry to adjust the accounts to reflect the average cost method.

2. What is the effect of the change in methods on 2011 net income?

Reference no: EM131000034

Questions Cloud

Assume that the demand for a product : Assume that the demand for a product X is heavily influenced by the price of another product Y (Py), and the income of consumers (I). The cross-price elasticity of X with respect to Y is exy = 1.25, and the income elasticity is eI = 2. Suppose now Py..
Does an officer have a need to detail the reasons for arrest : Does an officer have a need to detail the reasons for the arrest? Is a search warrant required at arrest? Where does that requirement come from
How would classical theorists prevent crime : How would classical theorists prevent crime? What are some problems with the theory of the classical school? After your research, which theory do you tend to side with and why
Comparing multiple sample means - anova : Read the following CASE ANALYSIS - Pizza Delivered Quickly - Choose one of these mini-projects for your assignment each week. If you choose Option 1 you must continue to work on that option each week.
What is the effect of the change in methods : Ignoring income taxes, prepare the 2011 journal entry to adjust the accounts to reflect the average cost method.
Describe two strategies you might employ to prevent dmc : Describe at least two approaches that might decrease DMC in the criminal justice system and explain how. As a current or future criminal justice professional, describe two strategies you might employ to prevent DMC in the future, and explain why yo..
Heavily influenced by the price of another product : Assume that the demand for a product X is heavily influenced by the price of another product Y (Py), and the income of consumers (I). The cross-price elasticity of X with respect to Y is exy = 1.25, and the income elasticity is eI = 2. Are X and Y co..
What is the new equilibrium price and quantity of avocados : Consider again the avocado example in the textbook, where demand and supply functions are Qd = 160 – 40p Qs = 50 + 15p Suppose a severe drought hit California, and the state government decided to subsidize farmers 40 cents for each pound of avocados ..
Explained variable in regression analysis : The variation attributable to factors other than the relationship between the independent variables and the explained variable in a regression analysis is represented by Question 19 options: regression sum of squares. total sum of squares. error sum ..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Youre the owner of small bread factory and are thinking of

you are the owner of a small bread factory and are thinking of lowering costs and expanding. your small-business

  The completed valves and the valves in ending inventory

Allocate the total costs between the completed valves and the valves in ending inventory.

  What is a prior probability

What is a prior probability. Explain the purpose behind using BayesTheorem.

  Given the following current year information

Given the following current year information, calculate Gold Corporation retained earnings balance on December 31.

  Patton company purchased 400000 of 10 bonds of scott co on

patton company purchased 400000 of 10 bonds of scott co. on january 1 2011 paying 376100. the bonds mature january 1

  Harrington company is a us-based company that prepares its

a. harrington company is a u.s.-based company that prepares its consoli- dated financial statements in accordance with

  Surf beach state college sbsc has a business school with

surf beach state college has a business school with three products undergraduate degrees graduate degrees and executive

  Guidelines for recognizing revenue

The earning of revenue by a business enterprise is recognized for accounting purposes when the transaction is recorded. In some situations, revenue is recognized approximately as it is earned in the economic sense. In other situations, however, ac..

  What aspect of the sarbanes oxley act might reduce

What aspect(s) of the Sarbanes Oxley Act might reduce opportunities for fraud?

  Non-cumulative preference shares

Dividends in areas pertain to non-cumulative preference shares?

  Describe your approach to customer relationship management

You have decided to open an Internet site to buy and sell used music CD. Describe your approach to customer relationship management for your new business.

  For the year ended december 31 2013 fidelity engineering

for the year ended december 31 2013 fidelity engineering reported pretax accounting income of 977000. selected

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd