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

question 33

Essay

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.

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Definitions:

Ethnic Gloss

Use of an ethnic label such as African American or Latino in a superficial way that portrays an ethnic group as being more homogeneous than it really is.

Ethnic Label

A term used to identify or categorize individuals based on their ethnicity or cultural heritage.

Homogeneous

Consisting of parts or elements that are all of the same kind; not heterogeneous or mixed.

Informed Consent

The process by which an individual is fully informed about and understands the benefits, risks, and implications of a medical procedure or participation in a study before agreeing to proceed.