posted Accounting Changes in-class examples

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Accounting Changes (Ch 22) Page 3 3) EXAMPLE 1 : The Titan Company starts operations on January 1, 2011, and initially uses the LIFO method of pricing inventory. Titan changes from the LIFO method to the FIFO method on January 1, 2013. The table below shows both the LIFO and FIFO ending inventory numbers for the current and previous two years. The company paid no dividends in 2011-2013 ($ in thousands). 2013 2012 2011 LIFO Ending inventory as of 12/31 $ 130 $ 90 $ 70 FIFO Ending inventory as of 12/31 210 160 120 Purchases 900 800 790
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Accounting Changes (Ch 22) Page 4 3) EXAMPLE 1 : The Titan Company starts operations on January 1, 2011, and initially uses the LIFO method of pricing inventory. Titan changes from the LIFO method to the FIFO The table below shows both the LIFO and FIFO ending inventory numbers for the current and The company paid no dividends in 2011- 2013 2012 2011 LIFO Ending inventory as of 12/31 $ 130 $ 90 $ 70 FIFO Ending inventory as of 12/31 210 160 120 Purchases 900 800 790
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Accounting Changes (Ch 22) Page 4 2013 2012 2011 LIFO Ending inventory as of 12/31 $ 130 $ 90 $ 70 FIFO Ending inventory as of 12/31 210 160 120 Purchases 900 800 790 LIFO 2013 2012 2011 Beginning Inventory 90 70 0 + Purchases 900 800 790 - Ending inventory 130 90 70 = COGS 860 780 720 FIFO 2013( 12/31/2013) 2012 2011 Beginning Inventory 160 120 0 + Purchases 900 800 790 - Ending inventory 210 160 120 = COGS 850 760 670
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Accounting Changes (Ch 22)
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This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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posted Accounting Changes in-class examples - Accounting...

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