The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1982. In 2021, the company decided to change to the average cost method. Data for 2021 are as follows:

Beginning inventory, FIFO (5,700 units @ $37.00)				$	210,900
Purchases:
5,700 units @ $43.00	$	245,100
5,700 units @ $47.00		267,900			513,000
Cost of goods available for sale				$	723,900
Sales for 2021 (9,400 units @ $77.00)				$	723,800

Additional information:

1. The company's effective income tax rate is 25% for all years.
2. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $188,100.
3. 7,700 units remained in inventory at the end of 2021.

Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in principle. 2. In the 20212019 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2021?

No	Event	General Journal	Debit	Credit
1	1	Retained earnings
		Deferred tax asset
		Inventory

In the 20212019 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2021?

Cost of goods sold
Inventory