Gerald Co. decided to switch from the FIFO method of costing inventories to the average cost...
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Gerald Co. decided to switch from the FIFO method of costing inventories to the average cost method at the beginning of 2016. At December 31, 2015, Gerald's inventory using FIFO was $37,650. Gerald inventory using average cost would have been $40,220. Gerald's tax rate is 30%. What is the change to Inventory? Indicate the amount and whether Inventory would be debited (D) or Credited (C). Answer with the amount and either a D or C right beside the amount (no space. Example: if your answer is $1,000 debit, put 1,000D Gerald Co. decided to switch from the FIFO method of costing inventories to the average cost method at the beginning of 2016. At December 31, 2015, Gerald's inventory using FIFO was $37,650. Gerald inventory using average cost would have been $40,220. Gerald's tax rate is 30%. What is the change to Inventory? Indicate the amount and whether Inventory would be debited (D) or Credited (C). Answer with the amount and either a D or C right beside the amount (no space. Example: if your answer is $1,000 debit, put 1,000D
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Answer Retained Earnings Credit 1799C Answer Explanation ... View the full answer
Related Book For
Accounting Volume 2
ISBN: 978-0176509743
2nd Canadian edition
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
Posted Date:
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