In 2020 the Company changed its method of accounting for inventory from weighted average cost...
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Accounting
In 2020 the Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2020 beginning inventory to increase by $960,000. The cumulative effect of this accounting change to be reported as an adjustment to beginning retained earnings for 2020, assuming a 40% tax rate, is $384.000 5%60,000 $576,000 50
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