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Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since...

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Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021 the company decided to switch to the average cost method. Data for 2021 are as follows: Beginning inventory. FIFO (4,000 units 530) Purchases: 4,000 units 536 4,000 units $40 Cost of goods available for sale Sales for 2021 (7,000 units $72) $120,000 $144,000 160,000 304,000 $424,000 $504,000 Additional Information: a. The company's effective income tax rate is 25% for all years. b. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $116,000 C5,000 units remained in Inventory at the end of 2021, Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change in methods on 2021 net income? Required 1 Required 2 Ignoring income taxes, prepare the 2021 Journal entry to adjust the accounts to reflect the average cost method. (If no entry is required for a transaction/event, select "No Journal entry required in the first account fold) View transaction list Journal entry worksheet

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