Following is the information of Huntington Co. income statement

2018 2019 Sales $15.000 $12.300 COGS 12.000 7.500 Gross profit 3.000 5.000 Operating expenses 2.000 3.000 Income before taxes 1.000 2.000 Income taxes (30%) 300 700 Net income 700 1.400 In 2018 Huntington applied FIFO method for its inventory, and starting in 2019 Huntington decised to change the method to the average method. Following is the inventory in 2018 according to FIFO and average: 31/12/2018 FIFO Average Inventory $3.400 $3.600

On 1 January 2018 retained earnings balance was reported $ 1.750

Instructions: a. Compute the inventory available for sale in 2018 according to FIFO and average, determine the effect to the COGS (average). b. Prepare the restatement the 2018 income statement. c. Prepare the correction journal needed in 1/1/2019. d. Prepare the restatement of retained earnings.