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 switch to the average cost method. data for 2018 are as follows: beginning inventory, fifo (4,800 units @ $34) $ 163,200 purchases: 4,800 units @ $40 $ 192,000 4,800 units @ $44 211,200 403,200 cost of goods available for sale $ 566,400 sales for 2018 (6,000 units @ $65) $ 390,000 additional information: the company's effective income tax rate is 40% for all years. if the company had used the average cost method prior to 2018, ending inventory for 2017 would have been $115,200. 8,400 units remained in inventory at the end of 2018.
required: 1. ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method.
2. what is the effect of the change in methods on 2018 net income?

Areal estate agent is considering changing her cell phone plan. there are three plans to choose from, all of which involve a monthly service charge of $20. plan a has a cost of $.42 a minute for daytime calls and $.17 a minute for evening calls. plan b has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. plan c has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening.a. determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)c. if the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (round each answer to the nearest whole number.include the indifference point itself in each answer.)d. suppose that the agent expects both daytime and evening calls. at what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans a and b?