Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1976. In 2013, the company decided to switch to the average cost method. Data for 2013 are as follows: Beginning inventory, FIFO (4,000 units @ $30) $ 120,000 Purchases: 4,000 units @ $36 $ 144,000 4,000 units @ $40 160,000 304,000 ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ Cost of goods available for sale $ 424,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ Sales for 2013 (7,000 units @ $72) $ 504,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ 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 2013, ending inventory for 2012 would have been $116,000. c. 5,000 units remained in inventory at the end of 2013. Required: 1. Prepare the 2013 journal entry to adjust the accounts to reflect the average cost method. Record adjustment to reflect average cost method.