Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. loire co. has used the fifo method since it began

Loire Co. has used the FIFO method since it began operations in Year 3. Loire...

70.2K

Verified Solution

Question

Accounting

Loire Co. has used the FIFO method since it began operations in Year 3. Loire changed to the weighted-average method for inventory measurement at the beginning of Year 6. This change was justified. In its Year 6 financial statements, Loire included comparative statements for Year 5 and Year 4. The following shows year-end inventory balances under the FIFO and weighted-average methods:

Year

FIFO

Weighted-Average

3

$ 90,000

$108,000

4

156,000

142,000

5

166,000

150,000
What adjustment, before taxes, should Loire make retrospectively to the balance reported for retained earnings at the beginning of Year 4?
A. $18,000 increase.
B. $18,000 decrease.
C. $0
D. $4,000 increase.

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Statistics
1.2K views

1: Explain the term ‘autoregression’ in a time series regression context. 2. Explain the term ‘autocorrelation’ and...

Psychology
1.2K views

1. Detail the ESSENTIAL VALUES for crisis response. Detail all ten of the values and give...

Biology
1.2K views

Use the information below to answer 5 questions Eastern Redbud The state tree of Oklahoma...

Physics
1.2K views

a 6 31 A particle would take a time t to move down a straight...

Geometry
1.2K views

Use the figure below to find the exact values of the half angles 5 Find...

Statistics
1.2K views

the quiz Question 10 The EPA has clear data collection p safety of drinking water...

Calculus
1.2K views

The set of points (2et, t), where t is a real number, is the graph...

Accounting
1.2K views

1.) Determine the ending balance of Materials Inventory 2.) Determine the total amount of manufacturing...

Accounting
1.2K views

Required: For financial reporting purposes, what is the total amount of product costs...

Accounting
1.2K views

On January 1, 2020, the Hardin Company budget committee has reached agreement on the following...

Accounting
1.2K views

Sunk costs are never relevant in decision making. True or False True False

Finance
1.2K views

Hello, I only need the answers for b-1 where it's in red. I tried those...