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FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method during 2020: FIFO Weighted Average January 1, 2020 inventory 4,000,000 4,500,000 December 31, 2020 inventory 4,800,000 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.

FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method during 2020: FIFO Weighted Average January 1, 2020 inventory 4,000,000 4,500,000 December 31, 2020 inventory 4,800,000 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
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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FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method during 2020:
FIFO Weighted Average
January 1, 2020 inventory 4,000,000 4,500,000
December 31, 2020 inventory 4,800,000 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.

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