In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consists the initial purchased items. LIFO Liquidation: It occurs when a company following LIFO method for inventory valuation , has more current sales than its current purchases. It arises because the company sells its old stock of inventory in the current period at the current selling price. It increases the net income thereby causing a higher tax liability in the current period. To Compute: The amount of cost of goods sold for 2016, 2017, and 2018.

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Answer 1

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Chapter 8, Problem 8.10P

1.

To determine

In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

LIFO Liquidation:

It occurs when a company following LIFO method for inventory valuation, has more current sales than its current purchases. It arises because the company sells its old stock of inventory in the current period at the current selling price. It increases the net income thereby causing a higher tax liability in the current period.

To Compute: The amount of cost of goods sold for 2016, 2017, and 2018.

2.

To determine

To Compute: The LIFO liquidation profit or loss.

3.

To determine

To Disclose: The note-LIFO liquidation profit or loss.

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Answer 2

Question

Chapter 8, Problem 8.10P

1.

To determine

In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

LIFO Liquidation:

It occurs when a company following LIFO method for inventory valuation, has more current sales than its current purchases. It arises because the company sells its old stock of inventory in the current period at the current selling price. It increases the net income thereby causing a higher tax liability in the current period.

To Compute: The amount of cost of goods sold for 2016, 2017, and 2018.

2.

To determine

To Compute: The LIFO liquidation profit or loss.

3.

To determine

To Disclose: The note-LIFO liquidation profit or loss.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 8.10P

1.

To determine

In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

LIFO Liquidation:

It occurs when a company following LIFO method for inventory valuation, has more current sales than its current purchases. It arises because the company sells its old stock of inventory in the current period at the current selling price. It increases the net income thereby causing a higher tax liability in the current period.

To Compute: The amount of cost of goods sold for 2016, 2017, and 2018.

2.

To determine

To Compute: The LIFO liquidation profit or loss.

3.

To determine

To Disclose: The note-LIFO liquidation profit or loss.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.10P

1.

To determine

In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

LIFO Liquidation:

It occurs when a company following LIFO method for inventory valuation, has more current sales than its current purchases. It arises because the company sells its old stock of inventory in the current period at the current selling price. It increases the net income thereby causing a higher tax liability in the current period.

To Compute: The amount of cost of goods sold for 2016, 2017, and 2018.

2.

To determine

To Compute: The LIFO liquidation profit or loss.

3.

To determine

To Disclose: The note-LIFO liquidation profit or loss.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.10P

1.

To determine

In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

LIFO Liquidation:

It occurs when a company following LIFO method for inventory valuation, has more current sales than its current purchases. It arises because the company sells its old stock of inventory in the current period at the current selling price. It increases the net income thereby causing a higher tax liability in the current period.

To Compute: The amount of cost of goods sold for 2016, 2017, and 2018.

2.

To determine

To Compute: The LIFO liquidation profit or loss.

3.

To determine

To Disclose: The note-LIFO liquidation profit or loss.

Answer 6

Chapter 8, Problem 8.10P

1.

To determine

In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

LIFO Liquidation:

It occurs when a company following LIFO method for inventory valuation, has more current sales than its current purchases. It arises because the company sells its old stock of inventory in the current period at the current selling price. It increases the net income thereby causing a higher tax liability in the current period.

To Compute: The amount of cost of goods sold for 2016, 2017, and 2018.

Answer 7

Chapter 8, Problem 8.10P

1.

To determine

In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consists the initial purchased items.

LIFO Liquidation:

It occurs when a company following LIFO method for inventory valuation, has more current sales than its current purchases. It arises because the company sells its old stock of inventory in the current period at the current selling price. It increases the net income thereby causing a higher tax liability in the current period.

To Compute: The amount of cost of goods sold for 2016, 2017, and 2018.

Answer 8

2.

To determine

To Compute: The LIFO liquidation profit or loss.

Answer 9

2.

To determine

To Compute: The LIFO liquidation profit or loss.

Answer 10

3.

To determine

To Disclose: The note-LIFO liquidation profit or loss.

Answer 11

3.

To determine

To Disclose: The note-LIFO liquidation profit or loss.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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To Compute: The LIFO liquidation profit or loss.

To Disclose: The note-LIFO liquidation profit or loss.

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