During 2022, Bamboo Inc. decided to change from FIFO method of inventory valuation to the weighted average method. January 1 inventory under FIFO 7,100,000 January 1 inventory under weighted average 7,700,000 December 31 inventory under FIFO 7,900,000 December 31inventory under weighted average 8,300,000 In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change? A. 1,000,000 addition B. 1,000,000 deduction C. 600,000 addition D. 600,000 deduction
During 2022, Bamboo Inc. decided to change from FIFO method of inventory valuation to the weighted average method. January 1 inventory under FIFO 7,100,000 January 1 inventory under weighted average 7,700,000 December 31 inventory under FIFO 7,900,000 December 31inventory under weighted average 8,300,000 In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change? A. 1,000,000 addition B. 1,000,000 deduction C. 600,000 addition D. 600,000 deduction
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PEB: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
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During 2022, Bamboo Inc. decided to change from FIFO method of
January 1 inventory under FIFO 7,100,000
January 1 inventory under weighted average 7,700,000
December 31 inventory under FIFO 7,900,000
December 31inventory under weighted average 8,300,000
In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change?
A. 1,000,000 addition
B. 1,000,000 deduction
C. 600,000 addition
D. 600,000 deduction
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