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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

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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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
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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