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    Bullock changes to the average cost method for inventory

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    Bullock Inc. has been in operation for 3 years and uses the FIFO method of pricing inventory. During the fourth year, Bullock changes to the average cost method for all its inventory. How will Bullock report this change?

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    https://brainmass.com/business/purchases-inventory-and-cogs/bullock-changes-average-cost-method-inventory-492347

    Solution Preview

    Bullock will report the change as a change in accounting principle from FIFO to the average cost method. We are going to assume that when they used FIFO, they did so properly and that all ...

    Solution Summary

    Bullock Inc. has been in operation for 3 years and uses the FIFO method of pricing inventory. During the fourth year, Bullock changes to the average cost method for all its inventory. How will Bullock report this change?

    $2.19