Whitman SA began operations on January 1, 2016, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2019. The following information is available for the years 2016-2018.

Instructions
(Ignore all tax effects.)
a. Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2019.
b. Determine net income to be reported for 2016, 2017, and 2018, after giving effect to the change in accounting policy.

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Net Income Computed Using Average-Cost Method FIFO Method 2016 €16,000 €19,000 2017 18,000 21,000 2018 20,000 25,000