Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2018, the company decided to switch to the average cost method. Data for 2018 are as follows: $169,000 Beginning inventory, FIFO (6,500 units @ $26) Purchases: 6,500 units @ $31 6,500 units @ $35 Cost of goods available for sale Sales for 2018 (7,000 units @ $65) $ 201,500 227,500 429,000 $598,000 $455,000 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 2018, ending inventory for 2017 would have been $156,000. c. 12,500 units remained in inventory at the end of 2018. Required: 1. Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change in methods on 2018 net income? 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 Required 1 Required 2 What is the effect of the change in methods on 2018 net income? The effect of the change for the year 2018 is a sold resulting in a in income after tax in cost of goods in income before taxes and a(n)