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

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Accounting

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Goddard Company has used the FFFO 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: Required: 1. Ignoring income taxes, prepare the 2021 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 2020 revised income statement? Complete this question by entering your answers in the tabs below. Ianoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method, (If no entry is required for a transactionvevent, select "No journal entry requined" in the fint account field.)

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