The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 21,800 units consisted of the following, listed in chronological order of acquisition: 12,900 units at a cost of $7.00 per unit = $90,300 8,900 units at a cost of $8.00 per unit = 71,200 During 2024, inventory quantity declined by 11,800 units. All units purchased during 2024 cost $11.00 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. LIFO liquidation profit $ 31,700
The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 21,800 units consisted of the following, listed in chronological order of acquisition: 12,900 units at a cost of $7.00 per unit = $90,300 8,900 units at a cost of $8.00 per unit = 71,200 During 2024, inventory quantity declined by 11,800 units. All units purchased during 2024 cost $11.00 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. LIFO liquidation profit $ 31,700
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...
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