In $2024,$ CPS Company changed Its method of valuing Inventory from the FIFO method to the average cost method. At December $31,2023.$ CPS$\text{'}$s inventorles were $$36$ million $($FIFO$).$ CPS$\text{'}$s records indicated that the inventorles would have totaled $$27\mathrm{.}0$million at December $31,2023,$ If determined on an average cost basis.

Required:

Prepare the journal entry to record the adjustment. $($Ignore income taxes.$)$

Note: Enter your answers In millons rounded to $1$ decimal place $($I$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$ If no entry is requlred for a transection$/$event$,$ select $"$No Journal entry required" In the first account fleld.

Journal entry worksheet

$1$

Record the adjustment necessary to reflect the average cost method.

Moter Entar actits bupre sedte:

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