Problem Algo Change in methods LO
Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in In
the company decided to switch to the average cost method. Data for are as follows:
Additional Information:
a The company's effective income tax rate is for all years.
b If the company had used the average cost method prior to ending inventory for would have been $
c units remained in inventory at the end of
Required:
Ignoring income taxes, prepare the journal entry to adjust the accounts to reflect the average cost method.
What is the effect of the change in methods on net income?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Ignoring income taxes, prepare the journal entry to adjust the accounts to reflect the average cost method.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
