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 23,800 units consisted of the following, listed in chronological order of acquisition: 13,900 units at a cost of $8.00 per unit = $111,200 9,900 units at a cost of $9.00 per unit = 89,100 During 2021, inventory quantity declined by 13,800 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. X Answer is complete but not entirely correct. LIFO liquidation profit 32,000 X

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 23,800 units consisted of the following, listed in chronological order of acquisition: 13,900 units at a cost of $8.00 per unit = $111,200 9,900 units at a cost of $9.00 per unit = 89,100 During 2021, inventory quantity declined by 13,800 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. X Answer is complete but not entirely correct. LIFO liquidation profit 32,000 X

Name: Exercise 8-23 (Algo) LIFO liquidation [LO8-4, 8-6]The Churchill Corpo
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Description: 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. Beginninginventory of 23,800 units consisted of the following, listed in chronologic

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
! Required information Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system [LO8-1, 8-4] [The following information applies to the questions displayed below.] Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,200 units%;B cost $6.30 each. August 8 Purchased 11,000 units for $5.70 each. August 14 Sold 8,800 units for $12.20 each. August 18 Purchased 6,600 units for $5.20 each. August 25 Sold 7,800 units for $11.20 each. August 28 Purchased 4,200 units for $5.80 each. August 31 Inventory on hand-7,400 units. Exercise 8-14 (Algo) Part 2 2. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method. Note: Round "Average Cost per Unit" to 2 decimal places. Inventory on hand Cost of Goods Sold…
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
k ces 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.
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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…
LO 7-3 anogro0 820) GROUP B PROBLEMS connect PB7-1 Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventory's selling price is $9 per unit. BW Jarl 2. Transactions Inventory, January 1 Sale, January 10 Purchase, January 12 Sale, January 17 Purchase, January 26 000552 TROS Units 250 $625 (enoillim ni) einemsisiz Isionsni) est (200) os galwollet sil tahogs 3.00 300 900 Unit Cost $2.50 um dliw smod visvo gnun to noissim adi babauot 4.00 020. (150) 80 blo2 abood to 1200 votneval prionice Total Cost 320 Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each…
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Inventory Write-Down ITT Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company's records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400 8.00 8.10 7.80 3 300 15.00 13.50 14.00 4 200 18.00 12.00 17.00 5 100 25.00 25.50 25.30 Required: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Lower of Item Cost or NRV $ 2. 3 4 Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item. $ 2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. Round your answers to the nearest cent. Lower of Item Cost or Market 1 2.…
! Required information E7-11 (Static) Evaluating the Choice among Three Alternative Inventory Methods Based on Income and Cash Flow Effects LO7-2, 7-3 [The following information applies to the questions displayed below.] Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,000 units at $38; purchases, 8,000 units at $40; expenses (excluding income taxes), $184,500; ending inventory per physical count at December 31, current year, 1,800 units; sales, 8,200 units; sales price per unit, $75; and average income tax rate, 30 percent. E7-11 Part 3 3. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow), assuming that prices were falling? Net income Income taxes paid (cash flow)