Question: In 2024, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31,

In 2024, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2023, 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, 2023, if determined on an average cost basis. Ignoring income taxes, what journal entry will B & B use to record the adjustment in 2024? Briefly describe other steps B & B should take to report the change.

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To record the change in millions Retained earnings 82 Inventory32 million 238 million 82 B B applies ... View full answer

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