GEN COMBO INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD

9th Edition

ISBN: 9781260089035

Author: J. David Spiceland

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 20, Problem 20.2BE

Change in inventory methods; average cost method to the FIFO method

• LO20–2

In 2018, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2017, Adonis’s inventories were $47.6 million (average cost). Adonis’s records indicated that the inventories would have totaled $64 million at December 31, 2017, if determined on a FIFO basis. Ignoring income taxes, what journal entry will Adonis use to record the adjustment in 2018?

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Chapter 20, Problem 20.1BE

Chapter 20, Problem 20.3BE

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Chapter 20 Solutions

GEN COMBO INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD

Ch. 20 - Prob. 20.1Q Ch. 20 - There are three basic accounting approaches to...Ch. 20 - Prob. 20.3Q Ch. 20 - Lynch Corporation changes from the...Ch. 20 - Sugarbaker Designs Inc. changed from the FIFO...Ch. 20 - Most changes in accounting principles are recorded...Ch. 20 - Southeast Steel, Inc., changed from the FIFO...Ch. 20 - Prob. 20.8Q Ch. 20 - Its not easy sometimes to distinguish between a...Ch. 20 - For financial reporting, a reporting entity can be...

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Solution Summary: The author explains that inventory costing methods are used to record the cost of goods sold and ending inventory in the financial statements.

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