Goldmeyer Company has used the FIFO method of Inventory valuation since it began operations in 2021....

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Goldmeyer Company has used the FIFO method of Inventory valuation since it began operations in 2021. Goldmeyer decided to change to the average cost method for determining Inventory costs at the beginning of 2024. The following schedule shows year-end Inventory balances under the FIFO and average cost methods: Year 2021 FIFO $ 46,600 82,800 89,400 2022 2023 Required: Average Cost $ 57,200 72,600 82,800 1. Ignoring Income taxes, prepare the 2024 Journal entry to adjust the accounts to reflect the average cost method. 2. How much higher or lower would cost of goods sold be in the 2023 revised Income statement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the adjustment necessary to reflect the average cost method. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal Goldmeyer Company has used the FIFO method of Inventory valuation since it began operations in 2021. Goldmeyer decided to change to the average cost method for determining Inventory costs at the beginning of 2024. The following schedule shows year-end Inventory balances under the FIFO and average cost methods: Year 2021 FIFO $ 46,600 82,800 89,400 2022 2023 Required: Average Cost $ 57,200 72,600 82,800 1. Ignoring Income taxes, prepare the 2024 Journal entry to adjust the accounts to reflect the average cost method. 2. How much higher or lower would cost of goods sold be in the 2023 revised Income statement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the adjustment necessary to reflect the average cost method. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal

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Answer To adjust the accounts to reflect the average cost method in 2024 we need to make a journal e... View the full answer