Question: During 2014, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2013 and 2012 (Williamsons first year of operations) under FIFO was

During 2014, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2013 and 2012 (Williamsons first year of operations) under FIFO was $166,800 and $197,500, respectively. Pretax income using weighted-average pricing in the prior years would have been $160,500 in 2013 and $179,800 in 2012. In 2014, Williamson Company reported pretax income (using weighted-average pricing) of $215,900. Show comparative income statements for Williamson Company, beginning with Income before income tax, as presented on the 2014 income statement. (The tax rate in all years is 29%.)

During 2014, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax

2014 2013 2012 Income before income tax Income tax Net Income

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!