Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018....

Question

Question

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change

Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Solution 1:

Journal entry to adjust the accounts
1	Retained Earnings (85000- 79500)	$5,500
	Inventory		$5,500

Solution 2:

Decrease due to beginning inventory (79500 -71500)	-8000
Increase due to beginning inventory (85000 -79500)	5500
Decrease in Cost of goods sold for 2020	-2500

Add a comment

Answer 2

Similar Homework Help Questions

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018....

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year FIFO Average Cost 2018 $ 46,600 $ 57,200 2019 82,800 72,600 2020 89,400 82,800 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the...
Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018....

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year 2018 2019 2020 FIFO $45,800 80,400 86,200 Average Cost $55,600 71,800 80,400 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost...
Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to ch...

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year FIFO Average Cost 2018 $45,700 $55,400 2019 $80,100 $71,700 2020 $85,800 $80,100 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost...

Exercise 9-24 (Algo) Change in inventory costing methods [LO9-6] Goddard Company has used the FIFO method...

Exercise 9-24 (Algo) Change in inventory costing methods [LO9-6] Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year 2018 2019 2020 FIFO $45,600 79,800 85,400 Average Cost $55,200 71,600 79,800 Required: 1. Ignoring income taxes, prepare the 2021 journal entry...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE THANK YOU! Goddard Company has used...

PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE THANK YOU! Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year 2018 2019 2820 FIFO $45,900 89,700 86,600 Average Cost $55,800 71,900 80,790 Required: 1. Ignoring income taxes, prepare the...
Please show correct solution for the wrong answers and put in the same format as the image. Thank you! Goddard Company...

Please show correct solution for the wrong answers and put in the same format as the image. Thank you! Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided ho change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year 2018 2019 2020 FIFO $45,900 80,700 86,600 Average Cost $55,800 71,900 80,700...

Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception...

Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: Beginning inventory, FIFO (5,600 units @ $26) $ 145,600 Purchases: 5,600 units @ $32 $ 179,200 5,600 units @ $36 201,600 380,800 Cost of goods available for sale $ 526,400 Sales for 2018 (10,000 units @ $75) $ 750,000 Additional Information:...
Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company i...

Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: Beginning inventory, FIFO (5,500 units @ $27) $ 148,500 Purchases: 5,500 units @ $33 $ 181,500 5,500 units @ $37 203,500 385,000 Cost of goods available for sale $ 533,500 Sales for 2018 (8,000 units @ $75) $ 600,000 Additional Information:...
Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception...

Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: $140,000 Beginning inventory, FIFO (5,000 units @ $28) Purchases: 5,000 units @ $34 5,000 units @ $38 Cost of goods available for sale Sales for 2018 (6,000 units @ $74) $170,000 190,000 360,000 $500,000 $444,000 Additional Information: a. The company's effective...

Rockwell Corporation uses a periodic inventory system and has used the FIFO Cost method since inception...

Rockwell Corporation uses a periodic inventory system and has used the FIFO Cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: $150,000 Beginning inventory, FIFO (5,000 units @ $30) Purchases: 5,000 units @ $36 5,000 units @ $40 Cost of goods available for sale Sales for 2021 (8,000 units @ $70) $180,000 200,000 380,000 $530,000 $560,000 Additional Information: a. The company's effective...

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018....

Homework Answers