Whitman Company began operations on January 1, 2008, and uses the average cost method of pricing inventory. Management is contemplating a change in inventory methods for 2011. The following information is available for the years 2008–2010.

Instructions
(a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2011.
(b) Determine net income to be reported for 2008, 2009, and 2010, after giving effect to the change in accountingpolicy.

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Net Income Computed Using FIFO Method 19,000 21,000 25,000 Average Cost Method 2008 2009 2010 16,000 18,000 20,000