FINANCIAL-ACCOUNTING-AND-REPORTING practice

Q3 Single choice

On August 31, 1992, Harvey Co. decided to change from the FIFO periodic inventory system to the weighted average periodic inventory system. Harvey is on a calendar year basis. The cumulative effect of the change is determined:

A
As of January 1, 1992.
B
As of August 31, 1992.
C
During the eight months ending August 31, 1992, by a weighted average of the purchases.
D
During 1992 by a weighted average of the purchases.