Cabinets-R-Us uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes.At the end of 2010, the following information was obtained from the inventory records:
$\begin{array}{lll}
&2009&2010\
\text { Ending inventory, FIFO } & \$ 56,000 & \$ 66,250 \
\text { Ending inventory, LIFO } & 46,500 & 55,000
\end{array}$ Required:
Prepare the necessary entry to convert to LIFO at the end of 2010.

Question

Cabinets-R-Us uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes.At the end of 2010, the following information was obtained from the inventory records:
 $\begin{array}{lll}
&2009&2010\
\text { Ending inventory, FIFO } & \$ 56,000 & \$ 66,250 \
\text { Ending inventory, LIFO } & 46,500 & 55,000
\end{array}$ Required:
Prepare the necessary entry to convert to LIFO at the end of 2010.

Quizplus · Accepted Answer

The Answer of Cabinets-R-Us uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes.At the end of 2010, the following information was obtained from the inventory records:
 $\begin{array}{lll}
&2009&2010\
\text { Ending inventory, FIFO } & \$ 56,000 & \$ 66,250 \
\text { Ending inventory, LIFO } & 46,500 & 55,000
\end{array}$ Required:
Prepare the necessary entry to convert to LIFO at the end of 2010.

Cabinets-R-Us Uses FIFO for Internal Reporting Purposes and LIFO for Financial