Method of valuing inventory from FIFO method

Reference no: EM13264211

In 2013, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2012, B & B’s inventories were $32 million (FIFO). B & B’s records indicated that the inventories would have totaled $23.8 million at December 31, 2012, if determined on an average cost basis.

Ignoring income taxes, what journal entry will Barton & Barton Company use to record the adjustment in 2013? (If no entry is required for a particular event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

Reference no: EM13264211

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