Problem 3: N Company had used the weighted average method of inventory since it began its operation

in 2019. The company decided to change to FIFO for determining inventory cost at the beginning of
2021. The following schedule shows the net income and year-end inventory balances for the past two
years 2019 and 2020:
2019 2020
Net income using weighted average  3,000,000 3,250,000
Year-end inventory FIFO  400,000 600,000
Year-end inventory weighted 250,000 500,000
average 
The merchandise inventory end in 2020 is 10,000 units. The trial balance at December 31, 2021 included
the following accounts:
Sales at SP of 80 per 6,400,000
unit 
Sales discount 64,000
Purchases  6,480,000
Purchase discount  980,000
The inventory purchases during 2021 were as follows:
Units  Units Cost
Purchase, 1 quarter ended  20,000
st
62
Purchase, 2 quarter ended  30,000
nd
64
Purchase, 3 quarter ended  40,000
rd
66
Purchase, 4 quarter ended  10,000
th
68