Question: During 2013, Davis Company changed from FIFO to weighted average method of inventory valuation. The FIFO inventory was P 710,000 on January 1 and P790,000

During 2013, Davis Company changed from FIFO to weighted average method of inventory valuation. The FIFO inventory was P 710,000 on January 1 and P790,000 on December 31. The average inventory was P 770,000 on January 1 and P 830.000 on December 31. The income tax rate is 30%. In the 2013 income statement, what amount should be reported, as gain or loss on the cumulative effect of this change?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The Excel file Closing Stock Prices provides data for four stocks and the Dow Jones Industrials Index over a 1 month period. a. Develop spreadsheet models for forecasting each of the stock prices...

PART B Kako-lako (Pty) Ltd manufactures and sells three different distinct beverages. As part of the standards and budget setting process, the capacities of the product lines have to be considered....

2. During 2011, Jasim Company changed from FIFO to weighted average inventory pricing. Pre-tax income in 2010 and 2009 (Jasim's first year of operation) under FIFO was $160,000 and $180,000...

Help. Beryl (Pty) Limited ("Beryl) manufactures a single product and uses a process costing system. The company recorded the following information for the month of March 2022: Units Opening work in...

QUESTION 2 - 17 Marks Beryl (Pty) Limited ("Beryl") manufactures a single product and uses a process costing system. The company recorded the following information for the month of March 2022:...

part A Allocate the joint costs to the products based on the sales value at split-off point method and name 2 other methods that can be used to allocate joint costs. part b - Calculate the normal...

{10} This question consists of two separate parts, both of which must be answered. PART 2.1 The following transactions were record in the books of Tshwane Factory Limited: Date Transaction Details...

How do I solve the following? 3. Wednesday Company had used the weighted average method of inventory valuation since it began operations in 2018. The entity decided to change to FIFO method for...

10:53 GBBC_01_Final Question 1 (1 point) Who among the follwoing are not considered as external user of financial statements? a b Government Banks Stock Exchange Management d Question 2 (1 point)...

During 2020, Orca Company decided to change from the FIFO method of inventory valuation to the weighted average method. January 1 December 31 FIFO Weighted average 7,100,000 7,900,000 In the...

QUESTION 1 (37 marks) Energy Ltd is a company that manufactures long-life batteries. Energy Ltd has a specialised form for their long-life batteries that makes their patent sought after in the...

The disk clutch is used in standard transmissions of automobiles. If four springs are used to force the two plates A and B together, determine the force in each spring required to transmit a moment...

11) Terry Lampron wishes to make eight annual withdrawals of $3,000 each beginning (1pts) on May 1, 2011. Assuming a 4 percent interest rate, on May 1, 2010, Lampron must deposit an amount of money...

8. (LO4) Some people argue that the efficient market hypothesis cannot explain the 1987 market crash or the high priceearnings ratio of Internet stocks during the late 1990s. What alternative...

john smith is the ceo and mary smith is the other owner in a joint held company, have it your way Inc. due to circumstances beyond his control, the company is not doing well john decides to use the...

Adam, Beth, Clayton and David are forming a bakery business, called ABCD Corp, and decided to organize as a corporation. Adam Beth and Clayton will each own 300 shares of the common stock and David...

50.00 mL of 0.010 M Cu2+ is titrated with 0.050 M EDTA at pH 9. Which of the following is true when 20.00 mL of titrant is added? Note: K' = the conditional formation constant for the CuY2- complex....

Calculate the theoretical yield of 2,3-dibromo-3-phenylpropanoic acid starting with 2.56g of trans-cinnamic acid (TCA). a. What volume of 1.2M bromine in acetic acid is required to fully convert the...

Which of the following alcohols would dehydrate the fastest when heated with acid? CH3 CH CH3 CH2OH OH OH HO A D. B.

Please form a group of THREE (3) to FOUR (4) members. In this presentation, you are required to review, present and do a ONE (1) page write-up for ONE (1) journal article. ARTICLE : A study on the...

5. Give examples of binary thinking.

2. In this chapter, the reader should reflect on the following concepts: Social facts, concrete fallacy, constructs, overestimation error.

1. Explain the following statements: a) Objective reality is always subjectively interpreted. b) What we know depends on whom we got to know it from.