In 2013, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2012 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2013 is $162,000 using the new FIFO method but would have been $151,000 if the company had continued to use LIFO. Describe the steps Hopyard should take to report this change. What is the effect of the change on 2013 cost of goods sold?
Answer to relevant QuestionsIn 2013, Wade Window and Glass changed its inventory method from FIFO to LIFO. Inventory at the end of 2012 is $150,000. Describe the steps Wade Window and Glass should take to report this change.Goddard Company has used the FIFO method of inventory valuation since it began operations in 2010. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2013. The following ...The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study inventory while preparing for the CPA ...On March 1, 2013, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2013. Costs ...Tristar Production Company began operations on September 1, 2013. Listed below are a number of transactions that occurred during its first four months of operations.1. On September 1, the company acquired five acres of land ...
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