PROBLEM 2: (CHANGE IN ACCOUNTING POLICY) Shilo Co. has been using the weighted average method of inventory costing since it began operations in 2018. Shilo Co. has reported the following net income: Net income Under Weighted Average Method P 400,000 285,000 2018 2019 2020 320,000 Beginning 2021 the company decided to change the inventory cost formula to FIFO method. The following are the December 31 inventory balances under each method: 2018 2019 2020 MI, end Per Books (Weighted Average) P 180,000 250,000 330,000 MI, End (FIFO) P 200,000 310,000 440,000 MI, End Per Books Understated By P 20,000 60,000 110,000 Compute for the following: a. Restated net income for 2019 and 2020 as a result of the change in policy b. Adjustment to the accumulated profits beginning balance of 2021 as a result of the

PROBLEM 2: (CHANGE IN ACCOUNTING POLICY) Shilo Co. has been using the weighted average method of inventory costing since it began operations in 2018. Shilo Co. has reported the following net income: Net income Under Weighted Average Method P 400,000 285,000 2018 2019 2020 320,000 Beginning 2021 the company decided to change the inventory cost formula to FIFO method. The following are the December 31 inventory balances under each method: 2018 2019 2020 MI, end Per Books (Weighted Average) P 180,000 250,000 330,000 MI, End (FIFO) P 200,000 310,000 440,000 MI, End Per Books Understated By P 20,000 60,000 110,000 Compute for the following: a. Restated net income for 2019 and 2020 as a result of the change in policy b. Adjustment to the accumulated profits beginning balance of 2021 as a result of the

Name: PROBLEM 2: (CHANGE IN ACCOUNTING POLICY)Shilo Co. has been using the
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Description: PROBLEM 2: (CHANGE IN ACCOUNTING POLICY)Shilo Co. has been using the weighted average method of inventory costing since it beganoperations in 2018. Shilo Co. has reported the following net income:Net income Under Weighted Average MethodP 400,0002018

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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On January 1, 2019, Lexor Company adopted the dollar-value-LIFO method of inventory costing. Lexor's ending inventory records appear as follows: Year Current cost Index 2019 $ 42,000 100 (1.00) 2020 58,000 110 (1.10) 2021 60,100 120 (1.20) 2022 68,200 130 (1.30) Compute the ending inventory for the years 2019, 2020, 2021, and 2022, using the dollar-value LIFO method. Round to the nearest dollar. Show all work. You can use the previous homework template that you used for
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[The following information applies to the questions displayed below.] A company reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Inventory Quantity Unit Cost Unit NRV Furniture 170 $ 82 $ 97 Electronics 47 370 285 Required: 1. Calculate the total recorded cost of ending inventory before any adjustments.