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In 2 0 2 4 , CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December

In 2024, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31,
2023, CPS's inventories were $39 million (FIFO). CPS's records indicated that the inventories would have totaled $29.4 million at
December 31,2023, if determined on an average cost basis.
Required:
Prepare the journal entry to record the adjustment. (Ignore income taxes.)
Note: Enter your answers in millions rounded to 1 decimal place (i.e.,5,500,000 should be entered as 5.5). 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.
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