Whispering Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025. 2023 2024 2025 Net Income Computed Using Average-Cost Method $15,900 17,880 20,180 FIFO Method LIFO Method $19,170 20,980 25,060 $12,110 13,990 17,120
Whispering Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025. 2023 2024 2025 Net Income Computed Using Average-Cost Method $15,900 17,880 20,180 FIFO Method LIFO Method $19,170 20,980 25,060 $12,110 13,990 17,120
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Whispering Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory. Management is
contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025.
2023
2024
2025
(Ignore all tax effects.)
(a)
Net Income Computed Using
Average-Cost Method
$15,900
17,880
20,180
FIFO Method
$19,170
Account Titles and Explanation
20,980
25,060
LIFO Method
$12,110
13,990
17,120
Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2026. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. List debit entry before credit entry.)
Debit
Credit
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