b. Assume that in 2020 New Girl, which had been using the average-cost method since beginning operations in 2017,changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2020,and show net income reported for 2017, 2018, 2019, and 2020. Below is the net income of New Girl Instrument AG, a private company, computed under the two inventory methods usinga periodic system.FIFOP26,00030,00029,00034,000(Ignore tax considerations.)Average CostP23,00025,00027,00030.0002017201820192020Requireda. Assume that in 2020 New Girl decided to change from the FIFO method to the average-cost method of pricinginventories. Prepare the journal entry necessary for the change that took place during 2020, and show net incomereported for 2017, 2018, 2019, and 2020.

Weighted average method is a method of inventory valuation where unit cost of goods available is…

Below is the net income of New Girl Instrument AG, a private company, computed under the two inventory methods using a periodic system. Average Cost P23,000 25,000 27,000 30,000 FIFO P26,000 30,000 29,000 34,000 (Ignore tax considerations.) 2017 2018 2019 2020 Required a. Assume that in 2020 New Girl decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2020, and show net income reported for 2017, 2018, 2019, and 2020.

Below is the net income of New Girl Instrument AG, a private company, computed under the two inventory methods using a periodic system. Average Cost P23,000 25,000 27,000 30,000 FIFO P26,000 30,000 29,000 34,000 (Ignore tax considerations.) 2017 2018 2019 2020 Required a. Assume that in 2020 New Girl decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2020, and show net income reported for 2017, 2018, 2019, and 2020.

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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Upon reviewing the draft of the financial statements for the year ended, December 31, 2022, Alocasia Company decided that market conditions were such that the provision for inventory obsolescence on December 31, 2022 should be increased by P3,000,000. If the same basis of calculating inventory obsolescence had been applied on December 31, 2021, the provision would have been P1,800,000 higher than the amount recognized in the statement of comprehensive income. What adjustment should be made to the net income of 2022? A. 1,200,000 increaseB. 3,000,000 increaseC. 1,200,000 decreaseD. 3,000,000 decrease
Caterpillar Inc (CAT) has the following excerpts from their financial statements December 31, 2021 December 31, 2020 Inventory (in $ Millions) 14,038 11,402 Net Income(in $ Millions) 6,489 2,998 Inventories are principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis. If the FIFO (first-in, first-out) method had been in use, inventories would have been $3,258 million and $2,921 million higher than reported at December 31, 2021 and 2020, respectively. Assume corporate tax rate of 21%. If CAT had used FIFO method instead of LIFO method What inventory (in $ Millions) would CAT report for 2021? What net income (profit) would CAT report in 2021? What is the cumulative amount of income tax savings that CAT generated through end of 2021 by using LIFO instead of FIFO? What…
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How much is the cumulative effect of this change that should be reported in the income statement for the year ended December 31, 2021?
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I need help please with accounting
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