Required information [The following information applies to the questions displayed below.] Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different inventory costing methods ($ in thousands). Pre-2023 2023 FIFO $ 2,800 750 $ 3,550 Average Cost $ 2,540 600 $ 3,140 LIFO $ 2,280 540 $ 2,820 3. Assume that Roberti used FIFO before 2024, and then in 2024 decided to switch to LIFO cost. Roberti's records of inventory purchases and sales are not available for several previous years. Therefore, the pre-2023 LIFO information ($2,280) is not available. However, Roberti does have the information needed to apply LIFO on a prospective basis beginning in 2023. Prepare the journal entry to record the change in accounting principle. (Ignore income tax effects.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Required information [The following information applies to the questions displayed below.] Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different inventory costing methods ($ in thousands). Pre-2023 2023 FIFO $ 2,800 750 $ 3,550 Average Cost $ 2,540 600 $ 3,140 LIFO $ 2,280 540 $ 2,820 3. Assume that Roberti used FIFO before 2024, and then in 2024 decided to switch to LIFO cost. Roberti's records of inventory purchases and sales are not available for several previous years. Therefore, the pre-2023 LIFO information ($2,280) is not available. However, Roberti does have the information needed to apply LIFO on a prospective basis beginning in 2023. Prepare the journal entry to record the change in accounting principle. (Ignore income tax effects.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a2
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Required information
[The following information applies to the questions displayed below.]
Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different
inventory costing methods ($ in thousands).
Pre-2023
2023
FIFO
$ 2,800
750
$ 3,550
Average Cost
$ 2,540
600
$ 3,140
LIFO
$ 2,280
540
$ 2,820
3. Assume that Roberti used FIFO before 2024, and then in 2024 decided to switch to LIFO cost. Roberti's records of inventory
purchases and sales are not available for several previous years. Therefore, the pre-2023 LIFO information ($2,280) is not available.
However, Roberti does have the information needed to apply LIFO on a prospective basis beginning in 2023. Prepare the journal entry
to record the change in accounting principle. (Ignore income tax effects.)
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in thousands (i.e., 10,000 should be entered as 10).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf1f1c18-d90b-47b3-b475-a6f9897afc01%2F4c5ce3ff-e136-40cc-bb3e-669f27288423%2Faxrmunp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different
inventory costing methods ($ in thousands).
Pre-2023
2023
FIFO
$ 2,800
750
$ 3,550
Average Cost
$ 2,540
600
$ 3,140
LIFO
$ 2,280
540
$ 2,820
3. Assume that Roberti used FIFO before 2024, and then in 2024 decided to switch to LIFO cost. Roberti's records of inventory
purchases and sales are not available for several previous years. Therefore, the pre-2023 LIFO information ($2,280) is not available.
However, Roberti does have the information needed to apply LIFO on a prospective basis beginning in 2023. Prepare the journal entry
to record the change in accounting principle. (Ignore income tax effects.)
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in thousands (i.e., 10,000 should be entered as 10).
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