Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the three inventory methods using a periodic system.

FIFO	Average Cost	LIFO
2012	$26,000	$24,000	$20,000
2013	30,000	25,000	21,000
2014	28,000	27,000	24,000
2015	34,000	30,000	26,000

(Ignore tax considerations.)

(a)Assume that in 2015 Ferreri decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2015, and show net income reported for 2012, 2013, 2014, and 2015.

(b)Assume that in 2015 Ferreri, which had been using the LIFO method since incorporation in 2012, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2015 and show net income reported for 2012, 2013, 2014, and 2015.