1. Assuming that the company changed to the FIFO method in 2015.

a) Indicate the net income that would be shown on comparative financial statements issued at 12/31 /15 for each of the four years and prepare the Journal entry to record the effect of the change

b) If the company had switched from the average cost method to the FIFO method with net income on an average cost basis for the four years as follows: 2012, $80,400; 2013, $86, 120; 2014, $90,300; and 2015, $93,600 what would be the net income and jornal entries that would be shown on comparative financial statements issued at 12/31 /15 for each of the four years under these conditions?

In 2015, Fischer Corporation changed its method of inventory pricing from LIFO to FIFO. Net income computed on a LIFO as compared to a FIFO basis for the four years involved is: (Ignore income taxes.) LIFO FIFO $85,700 2012 $78,200 2013 84,500 88,100 2014 87,000 91,400 2015 92,500 92,700