(Change in PolicyInventory Methods) Whitman Company began operations on January 1, 2012, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2015. The following information is available for the years 20122014. 3 3 EXERCISES Net Income Computed Using Average-Cost Method FIFO Method 2012 16,000 19,000 2013 18,000 21,000 2014 20,000 25,000 Instructions (Ignore all tax effects.) (a) Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2015. (b) Determine net income to be reported for 2012, 2013, and 2014, after giving effect to the change in accounting policy.