Various Changes in Principle—Inventory Methods Below is the net income of Benchley Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. 

                           FIFO               Average                  Cost LIFO

2008              $26,000            $23,000                     $20,000

2009                30,000              25,000                       21,000

2010                29,000              27,000                       24,000

2011                34,000              30,000                       26,000

(Ignore tax considerations.)

(a) Assume that in 2011 Benchley decided to change from the FIFO method to the average cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2011, and show net income reported for 2008, 2009, 2010, and 2011.

(b) Assume that in 2011 Benchley, which had been using the LIFO method since incorporation in 2008, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2011 and show net income reported for 2008, 2009, 2010, and 2011.