Goldmeyer Company has used the FIFO method of inventory valuation since it began operations in $2021.$ Goldmeyer

decided to change to the average cost method for determining inventory costs at the beginning of $2024.$ The following

schedule shows year$-$end inventory balances under the FIFO and average cost methods:

Required:

Ignoring income taxes, prepare the $2024$ journal entry to adjust the accounts to reflect the average cost method.

How much higher or lower would cost of goods sold be in the $2023$ revised income statement?

Complete this question by entering your answers in the tabs below.

Required $1$

Ignoring income taxes, prepare the $2024$ journal entry to adjust the accounts to reflect the average cost method.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the adjustment necessary to reflect the average cost method.

Note: Enter debits before credits.