Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in $1979.$ In

$2024,$ the company decided to switch to the average cost method. Data for $2024$ are as follows:

Additional Information:

a$.$ The company's effective income tax rate is $25\%$ for all years.

b$.$ If the company had used the average cost method prior to $2024,$ ending inventory for $2023$ would have been $$120,000.$

c$.10,000$ units remained in inventory at the end of $2024.$

Required:

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

What is the effect of the change in methods on $2024$ net income?

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

What is the effect of the change in methods on $2024$ net income?