Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please do not copy from chegg. provide an explaine

Please do not copy from Chegg. Provide an explained answer. I need to understand the...

80.2K

Verified Solution

Question

Accounting

Please do not copy from Chegg. Provide an explained answer. I need to understand the journal entries.

Holder-Webb Company began operations on January 1, 2012, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2015. The following information is available for the years 2012-2014.

Year Average cost method FIFO method LIFO method
2012 15,184 19,517 11,461
2013 18,249 21,295 13,205
2014 19,410 24,015 16,240

Please do not copy from Chegg. Provide an explained answer. I need to understand the journal entries.

a. Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2015.

b. Determine net income to be reported for 2012, 2013, and 2014, after giving effect to the change in accounting principle.

c. Assume Holder-Webb Company used the LIFO method instead of the average cost method during the years 2012-2014. In 2015, Holder-Webb changed to the FIFO method. Prepare the journal entry necessary to record the change in principle.

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