A. FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method during 2020: January 1, 2020 inventory December 31, 2020 inventory FIFO 4,000,000 4,800,000 Weighted Average 4,500,000 5,100,000 Required: Ignoring income taxes, 1. Prepare the journal entry to adjust the 2020 opening balance of retained earnings ac- count. 2. Determine the net income under the weighted average method assuming that the net income under FIFO was determined to be P900,000.

A. FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method during 2020: January 1, 2020 inventory December 31, 2020 inventory FIFO 4,000,000 4,800,000 Weighted Average 4,500,000 5,100,000 Required: Ignoring income taxes, 1. Prepare the journal entry to adjust the 2020 opening balance of retained earnings ac- count. 2. Determine the net income under the weighted average method assuming that the net income under FIFO was determined to be P900,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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