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Exercise 22-7 Below is the net income of Grouper Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. FIFO

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Exercise 22-7 Below is the net income of Grouper Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. FIFO Average Cost 2015 2016 $26,700 31,600 30,100 35.500 $24,000 26,800 28,100 31,500 LIFO $20,300 23.100 25,500 27,200 2017 2018 (Ignore tax considerations.) (a) Assume that in 2018 Grouper 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 2018, and show net income reported for 2015, 2016, 2017, and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Til and plastis (Ignore tax considerations.) (a) Assume that in 2018 Grouper 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 2018, and show net income reported for 2015, 2016, 2017, and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Credit 2018 2017 2016 2016 2015 Net income (b) Assume that in 2018 Grouper, which had been using the LIFO method since incorporation in 2015, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2018 and show net income reported for 2015, 2016, 2017, and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter o for the amounts.) Accesat Titles and Explanatica Debit 2018 2017 2016 2015 Net Income Click if you would like to Show Work for this question Open Show Work

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