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inventory balances under the FIFO and weighted average method: Year FIFO Weighted Average 2017 5,400,000 6,480,000 2018 9,360,000 8,520,000 2019 9,960,000 9,360,000 What amount, before income tax, should be reported in the 2020 statement of retained earnings as the cumulative effect of the change in accounting policy? PLS provide solution and explanation for the answer above Philippines Accounting standard

inventory balances under the FIFO and weighted average method: Year FIFO Weighted Average 2017 5,400,000 6,480,000 2018 9,360,000 8,520,000 2019 9,960,000 9,360,000 What amount, before income tax, should be reported in the 2020 statement of retained earnings as the cumulative effect of the change in accounting policy? PLS provide solution and explanation for the answer above Philippines Accounting standard

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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Gelai company had used the FIFO method of inventory valuation since it began operations in 2017. Gelai to change to the
weighted average method for determining inventory costs at the beginning of 2017. The following schedule shows year end
inventory balances under the FIFO and weighted average method:
Year FIFO Weighted Average
2017 5,400,000 6,480,000
2018 9,360,000 8,520,000
2019 9,960,000 9,360,000
What amount, before income tax, should be reported in the 2020 statement of retained earnings as the cumulative effect of the
change in accounting policy?

PLS provide solution and explanation for the answer above

Philippines Accounting standard

 

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