The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2018, the company decided to change to the average cost method. Data for 2018 are as follows: Beginning inventory, FIFO (6,400 units @ $44.00) $ 281,600 Purchases: 6,400 units @ $50.00 $ 320,000 6,400 units @ $54.00 345,600 665,600 Cost of goods available for sale $ 947,200 Sales for 2018 (10,800 units @ $84.00) $ 907,200 Additional information: The company's effective income tax rate is 35% for all years. If the company had used the average cost method prior to 2018, ending inventory for 2017 would have been $256,000. 8,400 units remained in inventory at the end of 2018. Required: 1. Prepare the journal entry at the beginning of 2018 to record the change in principle. 2. In the 20182016 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2018? Next Visit