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How should a company account for a change in inventory valuation method from FIFO to Weighted Average? a) Apply the change prospectively to new purchases b) Record as a change in estimate in current period c) Retrospectively restate prior periods d) Disclose in notes only without adjustment

How should a company account for a change in inventory valuation method from FIFO to Weighted Average? a) Apply the change prospectively to new purchases b) Record as a change in estimate in current period c) Retrospectively restate prior periods d) Disclose in notes only without adjustment

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 12MC: Which of the following financial statements would be impacted by a current-year ending inventory...
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How should a company account for a change in inventory valuation method from FIFO to Weighted Average? a) Apply the change prospectively to new purchases b) Record as a change in estimate in current period c) Retrospectively restate prior periods d) Disclose in notes only without adjustment
Transcribed Image Text:How should a company account for a change in inventory valuation method from FIFO to Weighted Average? a) Apply the change prospectively to new purchases b) Record as a change in estimate in current period c) Retrospectively restate prior periods d) Disclose in notes only without adjustment
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