Macintosh Inc. changed from FIFO to average costing method on January 1, 2023. Costs of goods sold
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Question:
Macintosh Inc. changed from FIFO to average costing method on January 1, 2023. Costs of goods sold for each year since the inception of the company are as follows:
| Average | FIFO | |
| 2021 | $200,000 | $180,000 |
| 2022 | 400,000 | 360,000 |
Required:
Ignoring income tax considerations, prepare the entry to report this accounting change.
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