The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one

Question:

The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 20,000 units consisted of the following, listed in chronological order of acquisition:

12,000 units at a cost of $8.00 per unit = $96,000
8,000 units at a cost of $9.00 per unit = 72,000

During 2021, inventory quantity declined by 10,000 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.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....

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