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zhuklara [117]
3 years ago
5

In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20

20, CPS’s inventories were $38 million (FIFO). CPS’s records indicated that the inventories would have totaled $28.6 million at December 31, 2020, if determined on an average cost basis.
Required: 1. Prepare the journal entry to record the adjustment.
Business
1 answer:
Anon25 [30]3 years ago
7 0

Answer:

The journal entry would be as follows:

December 31, 2020         Debit                     Credit

Retained Earnings          $9,400,000

                         Inventory                            $9,400,000

Explanation:

In order to prepare the journal entry to record the adjustment, we would have to calculate the amount of inventory with the following formula:

Amount of inventory=December 31, 2020, CPS’s inventories (FIFO)-31, 2020, CPS’s inventories (Average Cost)

                                =$38 million-$28.6 million

                                =$9.4 millions

Therefore, the journal entry would be as follows:

December 31, 2020         Debit                     Credit

Retained Earnings          $9,400,000

                         Inventory                            $9,400,000

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Nicklin Corporation is considering two alternatives, code-named M and N. Costs associated with the alternatives are listed below
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Answer and Explanation:

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The yoga class meets twice a week.
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We can write ratios in fraction form
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)Investors in international finance are moving funds from Country X to other countries. This depreciation is causing even more d
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Answer:

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As current foreign investors move fund out of country X, they will have to exchange their invested fund denominated in country X's currency to another currency which will result in higher supply of Country X's currency in the market.

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