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Ramsgate Company Has Used the FIFO Method for Inventory Valuation

question 34

Essay

Ramsgate Company has used the FIFO method for inventory valuation since it began business in 2012,but has elected to change to the average cost method starting in 2015.Year-end inventory valuations under each method are shown below: Ramsgate Company has used the FIFO method for inventory valuation since it began business in 2012,but has elected to change to the average cost method starting in 2015.Year-end inventory valuations under each method are shown below:    Required: How,and when,would Ramsgate reflect the change in accounting principle in its financial statements (ignore income taxes)?
Required:
How,and when,would Ramsgate reflect the change in accounting principle in its financial statements (ignore income taxes)?


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Information obtained through observation or experimentation, serving as a foundation for research and analysis.

Rational Argument

A logical discussion composed of premises leading to a conclusion, based on facts and reasoning rather than emotions or fallacies.

Selectively Providing

The strategy of offering resources or information to specific groups or individuals based on certain criteria or needs.

Structuring Events

Key occurrences or interventions that shape the direction, dynamics, or framework within which activities and processes operate.

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