Royal Inc. began operations on January 1, 2009, and uses the FIFO method of pricing inventory. Management is contemplating a change in inventory methodsfor 2015. The following information is available for the years 2012?2014.

(a) Prepare the journal entry necessary to record a change from the FIFO method to the average cost method in 2015.

(b) Determine net income to be reported for 2012, 2013, and 2014, after giving effect to the change in accounting principle.

(c) Assume Royal Inc. used the average cost method instead of the FIFO method during the years 2012?2014. In 2015, Royal changed to the LIFO method. Prepare the journal entry necessary torecord the change in principle.