The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1977. In 2016, the company decided to change to the average cost method. Data for 2016 are as follows:

Beginning inventory, FIFO (6,900 units @ $49.00)				$	338,100
Purchases:
6,900 units @ $55.00	$	379,500
6,900 units @ $59.00		407,100			786,600
Cost of goods available for sale				$	1,124,700
Sales for 2016 (11,800 units @ $89.00)				$	1,050,200

Additional information:

1.	The company's effective income tax rate is 30% for all years.
2.	If the company had used the average cost method prior to 2016, ending inventory for 2015 would have been $310,500.
3.	8,900 units remained in inventory at the end of 2016.

Required:

1.	Prepare the journal entry at the beginning of 2016 to record the change in principle. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)

2.	In the 20162014 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2016?