La Casita Restaurants changed from the FIFO method of inventory costing to the weighted average method during 2016.When reported in the 2016 comparative financial statements,the 2015 inventory amount will be:
A)Increased.
B)Decreased.
C)Increased or decreased,depending on how prices changed.
D)Unaffected.

Question

Quizplus · Accepted Answer

The change from FIFO to weighted average can result in an increase or decrease in the reported inventory amount for 2015, depending on whether prices were rising or falling during that period.

La Casita Restaurants Changed from the FIFO Method of Inventory