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

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.