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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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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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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 ...

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