Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2016, the company decided to switch to the average cost method. Data for 2016 are as follows Beginning inventory, FIFO (6,000 units @ $156,000 $26) Purchases 6,000 units @ $32 6,000 units@ $36 $192,000 216,000 408,000 Cost of goods available for sale $564,000 Sales for 2016 (7,000 units@ $76) $532,000 Additional Information a. The company's effective income tax rate is 40% for all years. b. If the company had used the average cost method prior to 2016, ending inventory for 2015 would have been $114,000 C. 11,000 units remained in inventory at the end of 2016 Required 1. Ignoring income taxes, prepare the 2016 journal entry to adjust the accounts to reflect the average cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record adjustment to reflect average cost method Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal