Question

In year 2, Rogers Corp. changes its inventory method from FIFO to the weighted-average method. Under the weighted-average method, the year 2 beginning inventory is $5,000 lower than under the FIFO method. The financial statements are revised using the retrospective approach. What are the financial statement effects of the change in accounting principle?

Answer 1

Answer:

Explanation:

Under the weighted-average method, the year 2 beginning inventory is $5,000 lower than under the FIFO method.

Year 1 net income will decrease and Year 1 ending inventory will decrease