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 (a) (b) (c) Average-Cost Method $109,000 Net Income Computed Using: FIFO Method $120,000 79,000 167,000 70,000 * Your answer is incorrect. Retained Earnings 146,000 Inventory Assume Cullumber Inc. used the average cost method instead of the FIFO method during the years 2023-2025. In 2026, Cullumber changed to the LIFO method. Prepare the journal entry necessary to record the change in principle. (Ignore tax considerations.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation LIFO Method $79,000 51,000 130,000 Debit 65000 Credit 65000

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 (a) (b) (c) Average-Cost Method $109,000 Net Income Computed Using: FIFO Method $120,000 79,000 167,000 70,000 * Your answer is incorrect. Retained Earnings 146,000 Inventory Assume Cullumber Inc. used the average cost method instead of the FIFO method during the years 2023-2025. In 2026, Cullumber changed to the LIFO method. Prepare the journal entry necessary to record the change in principle. (Ignore tax considerations.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation LIFO Method $79,000 51,000 130,000 Debit 65000 Credit 65000

Name: Account final Cullumber Inc. began operations on January 1, 2023, and
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Account final 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 2023-2025:2023202

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Explain receivables conversion period

A: It is the time interval connecting the sale of the last item using a credit card and cash receipts…

Q: Define sales journal.

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Define terminal date

A: Answer: In finance, horizon date is called as terminal value. It is the date from which individual…

Q: Journal entry for sales

A: The journal entry is prepared to record the monetary transactions of the company in the boooks.

Q: Define T- account.

A: Transaction: It is an economic event that is recorded in the accounting system of an organisation.…

Q: in managing accounts receivables, objectives must be achieved?

A: Working capital is calculated as the difference between the value of current assets and current…

Q: Account for accountspayable and analyzeaccounts payableturnover

A: Accounts payable: It refers to the money owed by the organization to their suppliers which is…

Q: Define roadshow

A: Roadshow: Roadshow is a sequence of conferences across diverse towns in which topmost managers from…

Q: Define prepaid accounts? Give example?

A: Prepaid account: It is an account which records the prepayment transactions. From the buyer’s point…

Q: Explain promissory notes?

A: Promissory note refers to a signed written document that contains an unconditional promise to pay…

Q: Name the major transaction cycles

A: In simple terms, the transaction cycle categorizes the basic business processes. It helps in…

Q: Define Accounts payable.

A: Accounts payable refer to money owed by a entity to its creditors or suppliers from whom the entity…

Q: rice of the common stock was $42 per s tion of the stock options, exercise of th 221. 2022 and 2023…

A: journal entries to record issuance of the stock options, termination of the stock options, exercise…

Q: Define registration statement (S-1)

A: For public organizations situated in the US, SEC Form S-1 is the underlying enrollment structure for…

Q: Define General ledger.

A: General ledger is the book containing the accounts and their amounts which are posted from journal…

Q: Define each of the following terms:e. Purchase accounting

A: Purchase accounting: Purchase accounting is the process of reviewing the liabilities and assets of a…

Q: Define warehouse receipt financing

A: A warehouse receipt is a document of proof about the ownership of goods kept in that warehouse.

Q: Define the ECL model for accounts receivable. How does it differ from the CECL model?

A: Accounts receivable (AR) is the amount of cash yet to be received by a firm for products or services…

Q: Define purchases Journal.

A: Journal: Journal is the book of original entry. Journal consists of the day-to-day financial…

Q: What is a schedule for accounts receiveable?

A: AR stands for Accounts Receivable which is defined as the balance of amount due to the company for…

Q: WHAT ARE THE MAIN DOCUMENTS USED FOR PAYDAYLOAN ?

A: A payday loan is a high-cost unsecured loan that can be availed at the time of a short-term…

Q: Illustratrate about the real and nominal accounts along with examples.

A: Real account:Real account involves the amount of asset, liability, or stockholder’s equity at a…

Q: Explain accounting domain with example

A: Accounting domain is the wide range of accounting including its all branches like financial…

Q: What's control account?

A: Accounting means the summarizing, recording and analyzing of the all business transaction during a…

Q: steps in posting from asales journal to an accounts receivable ledger

A: Sales Journal: A journal is a book of original entry where all journal entries are recorded on the…

Q: Describe the purpose of caash receipts journal.

A: The cash receipts journal is a special section of the general journal specifically used to record…

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

Account final

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
(a)
(b)
(c)
Average-Cost Method
$109,000
70,000
146,000
Net Income Computed Using:
FIFO Method
$120,000
79,000
167,000
* Your answer is incorrect.
Account Titles and Explanation
Retained Earnings
Assume Cullumber Inc. used the average cost method instead of the FIFO method during the years 2023-2025. In 2026,
Cullumber changed to the LIFO method. Prepare the journal entry necessary to record the change in principle. (Ignore tax
considerations.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.)
Inventory
LIFO Method
$79,000
51,000
130,000
Debit
65000
Credit
65000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What are roll-forward procedures? Provide some examples
Bramble Corporation builds in-home theater systems. Bramble's business is growing quickly. Therefore, the CEO, Paul Bramble, decides to purchase three new trucks on September 20, 2017. The terms of acquisition for each truck are described below. The first truck's list price is $16,380. Bramble exchanges home theater equipment from its inventory for the truck. The home theater equipment cost Molitor $10,140. Bramble normally sells the equipment for $15,405. Bramble uses a perpetual 1. inventory system. The second truck has a list price of $17,160. Bramble makes a down payment of $3,900 cash on this truck and signs a zero- interest-bearing note with a face amount of $13,260. Payment of the note is due September 20, 2018. Bramble would normally have to pay interest at a rate of 8% for such a borrowing. 2. The list price of the third truck is $14,976. This truck is acquired in exchange for 936 shares of common stock in Bramble Corporation. The stock has a par value per share of $10 and a…
Fast pls Define accounting equation
Date Account Titles and Explanation Debit Credit
Definition of cloud accounting
Define Debit
State the meaning of Receipt and Payment Account.
The Sum of all the accounts in the accounts receivable subsidiary ledger should?
Account for notesreceivable and interestrevenue
Explain the basic features of Income and Expenditure Account and ofReceipt and Payment Account.
Differentiate between source documents and vouchers.
Journalize the transactions.