In 2018, Bevins Company decided to change from LIFO to FIFO due to better representation...
60.1K
Verified Solution
Link Copied!
Question
Accounting
In 2018, Bevins Company decided to change from LIFO to FIFO due to better representation of the flow of inventory and costs. Bevins started the business in 2016. Bevins tax rate is 35%. The following analysis was provided by management:
Ending Inventory LIFO FIFO Net Income
12/31/2016 $375,650 $405,900 975,000
12/31/2017 $360,450 $410,750 1,350,000
12/31/2018 $365,975 $445,775 1,389,500
Required:
1) Prepare the journal entry necessary to record the change.
2) What amount of net income would Bevins report in 2016, 2017, and 2018?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.