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Ramsgate Company Has Used the FIFO Method for Inventory Valuation

Question 23

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Ramsgate Company has used the FIFO method for inventory valuation since it began business in 2014, but has elected to change to the average cost method starting in 2017. 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 2014, but has elected to change to the average cost method starting in 2017. 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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Ramsgate would revise prior years' finan...

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