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Below is the net income of Jonesey Laboratorires computed under the three invertory methods. Instructions: a....

Below is the net income of Jonesey Laboratorires computed under the three invertory methods. Instructions: a. Assume that in 2008 Jonesey decided to change from the average-cost method to the FIFO method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2018 and show the net income reported for 2016, 2017, and 2018. b. Assume that in 2018 JOnesey, which had been using the LIFO method since incorporation in 2015, changed to the average cost method of pricing inventories. Prepare the journal entry necessary for the change in 2018 and show net income reported for 2016, 2017, and 2018.

Yr FIFO Average cost LIFO
2015               75,000               50,000 30000
2016               55,000               50,000 38000
2017               58,000               50,000 42000
2018               60,000               50,000 40000
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