In 2024, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of
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In 2024, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2023 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2024 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 2024 cost of goods sold?
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Hopyard applies the FIFO cost method retrospectively that is to all prior periods as if it always ha...View the full answer
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