Cullumber Inc. began operations on January 1, 2023, and uses the FIFO method of pricing inventory. Management is contemplating achange in inventory methods for 2026. The following information is available for the years 2023-2025:202320242025(a)Net Income Computed Using:FIFO MethodAverage-Cost Method$109,00070,000146,000$120,000Account Titles and Explanation79,000167,000LIFO Method$79,00051,000130,000Prepare the journal entry necessary to record a change from the FIFO method to the average cost method in 2026. (Ignore taxconsiderations.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.)DebitCredit

Name: Cullumber Inc. began operations on January 1, 2023, and uses the FIFO
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Description: Cullumber Inc. began operations on January 1, 2023, and uses the FIFO method of pricing inventory. Management is contemplating achange in inventory methods for 2026. The following information is available for the years 2023-2025:202320242025(a)Net I

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Cullumber Inc. began operations on January 1, 2023, and uses the FIFO method of pricing inventory. Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025: 2023 2024 2025 Net Income Computed Using: Average-Cost Method $109,000 70,000 146,000 FIFO Method $120,000 79,000 167,000 LIFO Method $79,000 51,000 130,000

Cullumber Inc. began operations on January 1, 2023, and uses the FIFO method of pricing inventory. Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025: 2023 2024 2025 Net Income Computed Using: Average-Cost Method $109,000 70,000 146,000 FIFO Method $120,000 79,000 167,000 LIFO Method $79,000 51,000 130,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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