9-14 (Algo) Change in methods [LO9-6] Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2024, the company decided to switch to the average cost method. Data for 2024 are as follows: 5,500 units @ $33 Beginning inventory, FIFO (5,500 units $27) Purchases: $ 148,500 $ 181,500 203,500 385,000 $ 533,500 5,500 units @ $37 Cost of goods available for sale Sales for 2024 (8,000 units @ $75) Additional Information: a. The company's effective income tax rate is 25% for all years. $ 600,000 b. If the company had used the average cost method prior to 2024, ending inventory for 2023 would have been $126,500. c. 8,500 units remained in inventory at the end of 2024. Required: 1. Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change in methods on 2024 net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record adjustment to reflect average cost method. Note: Enter debits before credits. Problem 9-14 (Algo) Change in methods [LO9-6] Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2024, the company decided to switch to the average cost method. Data for 2024 are as follows: 5,500 units Beginning inventory, FIFO (5,500 units @ $27) Purchases: $ 148,500 $33 $ 181,500 203,500 385,000 $ 533,500 5,500 units $37 Cost of goods available for sale Sales for 2024 (8,000 units @ $75) Additional Information: a. The company's effective income tax rate is 25% for all years. $ 600,000 b. If the company had used the average cost method prior to 2024, ending inventory for 2023 would have been $126,500. c. 8,500 units remained in inventory at the end of 2024. Required: 1. Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change in methods on 2024 net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the effect of the change in methods on 2024 net income? The effect of the change for the year 2024 is a in cost of goods in income before taxes and a(n) sold resulting in a in income after tax. < Required 1 Required 2 >