When a change in depreciation method occurs

$$ the cumulative effect of the change in accounting A manufacturing company calculates cost of goods sold as follows:

$$ Beginning FG inventory $-$ cost of goods manufactured $-$ ending FG inventory.

$$ Beginning FG inventory $+$ cost of goods purchased $-$ ending FG inventory.

$$ Beginning FG inventory $+$ cost of goods manufactured $-$ ending FG inventory.

$$ Ending FG inventory $-$ cost of goods manufactured $+$ beginning FG inventory. should be classified as discontinued operations on the income statement.

$$ the cumulative effect of the change should be reflected on the income statement as of the beginning of the next year.

O prior years' financial statements should be changed to reflect the newly adopted method.

$$ the change should be reported in current and future years.