hases: 6,700 units @ $53.00 $ 355,100 6,700 units @ $57.00 381,900 737,000 Cost of goods available for sale $ 1,051,900 Sales for 2024 (11,400 units @ $87.00) $ 991,800 Additional information: The company's effective income tax rate is 25% for all years.
The Strawser-Morris Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1985. In 2024, the company decided to change to the average cost method. Data for 2024 are as follows:
| Beginning inventory, FIFO (6,700 units @ $47.00) | $ 314,900 | |
|---|---|---|
| Purchases: | ||
| 6,700 units @ $53.00 | $ 355,100 | |
| 6,700 units @ $57.00 | 381,900 | 737,000 |
| Cost of goods available for sale | $ 1,051,900 | |
| Sales for 2024 (11,400 units @ $87.00) | $ 991,800 |
Additional information:
The company's effective income tax rate is 25% for all years.
If the company had used the average cost method prior to 2024, ending inventory for 2023 would have been $288,100.
8,700 units remained in inventory at the end of 2024.
Required:
Prepare the
In the 2024–2022 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2024?
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