Rockwell corporation uses a periodic inventory system and has used the fifo cost method since inception of the company in 1979. in 2018, the company decided to switch to the average cost method. data for 2018 are as follows: beginning inventory, fifo (4,800 units @ $34) $ 163,200 purchases: 4,800 units @ $40 $ 192,000 4,800 units @ $44 211,200 403,200 cost of goods available for sale $ 566,400 sales for 2018 (6,000 units @ $65) $ 390,000 additional information: the company's effective income tax rate is 40% for all years. if the company had used the average cost method prior to 2018, ending inventory for 2017 would have been $115,200. 8,400 units remained in inventory at the end of 2018.
required: 1. ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method.
2. what is the effect of the change in methods on 2018 net income?

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?