In 2013, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2012, B & B’s inventories were $32 million (FIFO). B & B’s records indicated that the inventories would have totaled $23.8 million at December 31, 2012, if determined on an average cost basis. Ignoring income taxes, what journal entry will B & B use to record the adjustment in 2013? Briefly describe other steps B & B should take to report the change.
Answer to relevant QuestionsThe December 31, 2013, adjusted trial balance for the Blueboy Cheese Corporation is presentedbelow.In 2013, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2012, Adonis’s inventories were $47.6 million (average cost). Adonis’s records indicated ...During 2011 (its first year of operations) and 2012, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2013, Batali decided to change to the average method ...At the end of 2012, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2012 on bonds payable. The bonds mature in 2024. The discount on the bonds is amortized by ...Late in 2013, you and two other officers of Curbo Fabrications Corporation just returned from a meeting with officials of The City of Jackson. The meeting was unexpectedly favorable even though it culminated in a settlement ...
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