Business, 19.11.2019 01:31 KallMeh

During 2016 (its first year of operations) and 2017, batali foods used the fifo inventory costing method for both financial reporting and tax purposes. at the beginning of 2018, batali decided to change to the average method for both financial reporting and tax purposes. income components before income tax for 2018, 2017, and 2016 were as follows ($ in millions): 2018 2017 2016 revenues $ 530 $ 500 $ 490 cost of goods sold (fifo) (57 ) (51 ) (49 ) cost of goods sold (average) (84 ) (78 ) (74 ) operating expenses (298 ) (294 ) (286 ) dividends of $30 million were paid each year. batali’s fiscal year ends december 31.

required:

1. prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (ignore income taxes.)

2. prepare the 2018–2017 comparative income statements.

3. & 4. determine the balance in retained earnings at january 2017 as batali reported using fifo method and determine the adjustment of balance in retained earnings as on january 2017 using average method instead of fifo method.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:00

12. nelson corporation, which has only one product, has provided the following data concerning its most recent month of operations: selling price $ 115 units in beginning inventory 380 units produced 5,900 units sold 6,070 units in ending inventory 210 variable costs per unit: direct materials $ 46 direct labor $ 27 variable manufacturing overhead $ 3 variable selling and administrative $ 12 fixed costs: fixed manufacturing overhead $ 112,100 fixed selling and administrative $ 36,420 the company produces the same number of units every month, although the sales in units vary from month to month. the company's variable costs per unit and total fixed costs have been constant from month to month. a. prepare a contribution format income statement for the month using variable costing. unit product cost under variable costing direct materials direct labor variable manufacturing overhead variable costing unit product cost (formula)

Answers: 3

Answer

Business, 22.06.2019 04:00

Medtronic, inc., is a medical technology company that competes for customers with st. jude medical s.c., inc. james hughes worked for medtronic as a sales manager. his contract prohibited him from working for a competitor for one year after leaving medtronic. hughes sought a position as a sales director for st. jude. st. jude told hughes that his contract with medtronic was unenforceable and offered him a job. hughes accepted. medtronic filed a suit, alleging wrongful interference. which type of interference was most likely the basis for this suit? did it occur here? medtronic, inc., is a medical technology company that competes for customers with st. jude medical s.c., inc. james hughes worked for medtronic as a sales manager. his contract prohibited him from working for a competitor for one year after leaving medtronic

Answers: 2

Answer

Business, 23.06.2019 00:10

Many years ago, sprint telecommunications aired an advertisement intended to demonstrate the clarity of reception sprint customers could expect. the ad showed a rancher, who had used a different company, complaining that he had ordered 100 oxen from his supplier and instead received 100 dachshunds. the mix-up was probably due to the presence of in the communication process.

Answers: 3

Answer

Business, 23.06.2019 01:00

Lycan, inc., has 7.5 percent coupon bonds on the market that have 8 years left to maturity. the bonds make annual payments and have a par value of $1,000. if the ytm on these bonds is 9.5 percent, what is the current bond price? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) current bond price

Answers: 2

Answer

You know the right answer?

During 2016 (its first year of operations) and 2017, batali foods used the fifo inventory costing me...

Questions