E22-2B (Change in Principle—Inventory Methods) Royal Inc. began operations on January 1, 2009, and uses the FIFO method of pricing inventory. Management is contemplating a change in inventory methods for 2015. The following information is available for th

E22-2B (Change in Principle—Inventory Methods) Royal Inc. began operations on January 1, 2009, and uses the FIFO method of pricing inventory. Management is contemplating a change in inventory methods for 2015. The followingin formation is available for the years 2012–2014.
                                                          Net Income Computed Using:
                   Average-Cost Method                 FIFO Method                           LIFO Method
2012            $105,000                                     $120,000                                     $ 80,000
2013              70,000                                          80,000                                         50,000
2014             150,000                                       165,000                                       130,000
Instructions
(a) Prepare the journal entry necessary to record a change from the FIFO method to the average cost method in 2015.
(b) Determine net income to be reported for 2012, 2013, and 2014, after giving effect to the change in accounting principle.
(c) Assume Royal Inc. used the average cost method instead of the FIFO method during the years 2012–2014. In 2015, Royal changed to the LIFO method. Prepare the journal entry necessary to record the change in principle.