Question

Nidal company reported inventory in the 2017 year-end balance sheet, using the fifo method, as $185,000. In 2018, the company decided to change its inventory method to average cost. If the company had used the average cost method in 2017, ending inventory would have been $171,000. What adjustment would nidal make for this change in inventory method?

Answer 1

Answer:

Ending inventory, the value of goods available for sale at the end of the accounting period, plays an important role in reporting the financial status of a company and can best be figured out using the equation, Beginning Inventory + Net Purchases - Cost of Goods Sold (or COGS) = Ending Inventory.

Answer 2

Answer:

.....☺☺☺☺:) :) :) :)