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If a company is switching from LIFO to average cost inventory method?


What accounting treatment is required for the switch. In order to value the old inventory under the new method?

538 day(s) ago

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CPAinLA 		The inventory is still valued at its historical cost. The only thing that changes is how COGS (cost of goods sold) is calculated. The change in inventory method should however be disclosed in the notes to the financial statements of course.

Posted 538 days ago

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