Whitman SA began operations on January 1, 2019, and uses the average-cost method of pricing inventory. Management
Question:
Whitman SA began operations on January 1, 2019, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2022. The following information is available for the years 2019–2021.
Instructions
a. Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2022.
b. Determine net income to be reported for 2019, 2020, and 2021, after giving effect to the change in accounting policy.
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Related Book For 
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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