Question: In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $127,000 would have been $145,000 if

In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2018 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 2018 cost of goods sold?

Step by Step Solution

★★★★★

3.39 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Hopyard applies the FIFO cost method retrospectively that is to all prior periods as if it always ha... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1265-B-C-A-C-B-A-M(2562).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

In 2011, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2010 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2011 is...

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...

In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2021 is...

In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $102,000 would have been $120,000 if FIFO had been used. Inventory at the end of 2018 is...

BE 9-13 ? Change in inventory costing methods In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of 5127.000 would have been 51457000 if FIFO had...

In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2018 is...

BE 913 '? Change in inventory costing methods In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $127,000 would have been $145,000 if FIFO had...

html 09 In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $122,000 would have been $141,000 if FIFO had been used. Inventory at the end of 2018...

In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $120,000 would have been $135,000 if FIFO had been used. Inventory at the end of 2018 is...

Brief Exercise 9-13 Change in inventory costing methods [LO9-6] In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $113,000 would have been...

Electronic contracts are founded on the principles of common law. Yet, there are areas where new principles have been formulated, both at international and domestic levels. In not more than seven...

You are considering the purchase of a small retail shopping complex that will generate net cash flows each of the next 15 years, starting at $500,000 in Year 1. You normally demand a 8% rate of...

2 AMT liability results if the tentative minimum tax (TMT) exceeds the regular income tax liability. What happens if the regular income tax liability exceeds the TMT? Does this create a negative AMT...

Describe the IT planning process.

On May 1, 2021,Varga Tech Services signed a $6,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the...

Supply Club, Inc., sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2021 it started a loyalty program through which...

Horizon Corporation manufactures personal computers. The company began operations in 2016 and reported profits for the years 2016 through 2019. Due primarily to increased competition and price...

Descriptive Statistics NMeanStDevSE Mean95% CI for 25024.0684.6580.295(23.488, 24.648) : population mean of Age of First Marriage, 2004 1.State the sample size, sample mean, and sample standard...

(Use the information to answer questions #15 to #16) . Consider the following boxplot of some exam scores: TILTTITITITITITT TTTTTT 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99...

I am just asking for defintions and examples of the following. Please and thank you.