es Exercise 8-23 (Algo) LIFO liquidation [LO8-4, 8-6] The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 20,800 units consisted of the following, listed in chronological order of acquisition: 12.400 units at a cost of $8.00 per unit-$99,200 8,400 units at a cost of $9.00 per unit - 75,600 During 2021, inventory quantity declined by 10,800 units. All units purchased during 2021 cost $12.00 per unit. Required: Calculate the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note, assuming the amount determined is material.

es Exercise 8-23 (Algo) LIFO liquidation [LO8-4, 8-6] The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 20,800 units consisted of the following, listed in chronological order of acquisition: 12.400 units at a cost of $8.00 per unit-$99,200 8,400 units at a cost of $9.00 per unit - 75,600 During 2021, inventory quantity declined by 10,800 units. All units purchased during 2021 cost $12.00 per unit. Required: Calculate the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note, assuming the amount determined is material.

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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3 A company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value. Product 101 102 103 104 Total Cost $ 136,000 99,000 68,000 38,000 Required: 1. Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for the company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Product Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 101 102 103 104 $ 108,000 118,000 58,000 58,000 Cost $ 136,000 $ 99,000 68,000 38,000 341,000 $ NRV 108,000 118,000 58,000 58,000 Inventory Value $ 0
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TB MC Qu. 8-72 (Algo) Fulbright Corporation uses the periodic inventory... Fulbright Corporation uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): . 41 units at $102 per unit .74 units at $86 per unit • 173 units at $65 per unit Sales for the year totaled 275 units, leaving 13 units on hand at the end of the year. Ending inventory using the FIFO method is: Multiple Choice O O C $1,326. $895. $845. 20 GDD < Prev F6 12 of 16 F7 Next DII FB F9 F10 1
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Crane Ltd. had the following items in inventory as at December 31, 2024: Item No. Quantity Unit Cost NRV དྷྭ སྒྲ སཱུ སྦ 340 $4.00 $4.30 370 3.00 2.90 380 8.00 9.00 400 7.00 6.80 Assume that Crane uses a perpetual inventory system. Fill in the table below for the lower of cost and net realizable value per unit, the inventory dollar amount at the lower of cost and net realizable value, and the dollar amount of the inventory at cost. ntity Unit Cost NRV Unit LC & NRV 340 $4.00 $4.30 S 370 3.00 2.90 Dollar LC & NRV 4.00 $ 2.90 1360 1073 380 8.00 9.00 8.00 3040 400 7.00 6.80 6.80 2720 Dollar Cost 1360 1110 3040 2800 $ 8193 $ 8310 Prepare any necessary adjusting entry at December 31, 2024. (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 Debit Credit
Valuing Inventory at Lower-of-Cost-or-Market Management of Tarry Company takes the position that under the lower-of-cost-or-market rule, the two items below are reported in ending inventory at $119,520 (total). Inventory cost is reported using LIFO. • Edgers: 2,160 in inventory; cost is $22 each; replacement cost is $16 each; estimated sale price is $30 each; estimated distribution cost is $3 each; and normal profit is 10% of sale price. • Hedge clippers: 1,440 in inventory; cost is $50 each; replacement cost is $36 each; estimated sale price is $90 each; estimated distribution cost is $28 each; and normal profit is 20% of sale price. a. Compute your inventory valuation by item and in total for the Tarry Company inventory reported above. Inventory valuation for edgers $ Inventory valuation for hedge clippers Total inventory valuation b. Prepare the entry, if any, to report inventory at the lower-of-cost-or-market. Assume that all adjustments directly impact cost of goods sold and…
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If Exxon uses FIFO for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is 100 barrels of crude oil Beginning inventory and purchases Beginning inventory: Jan 1 March 11 June 1 September 1 December 1 Cost of ending inventory Cost of goods sold Barrels Barrel cost 123 48 63 73 48 355 $94 103 97 92 102 Total cost $11,562 4,944 6,111 6,716 4,896 $34,229
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