GET SOLUTIONS Chapter: CH9 Problem: 1E Blago Wholesale Company began operations on January 1, 2017, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 2018 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed: 2017 2018 Average cost FIFO $150,000 160,000 270,000 Condensed income statements for Blago Wholesale appear below: 2017 600,000 250,000 2018 30000 275000 $100D. Cost of goods sold Required Based on this information, what would 2018 net income be after the change to the FIFO method? ignore any income tax effects of this change in accounting method. Step-by-Step Solution