The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 = $11,200 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. 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 = $11,200 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.
Expert Answer:
Answer rating: 100% (QA)
Under LIFO liquidationthe inventory which is not sold off in the previous peri... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
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...
-
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...
-
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...
-
Subsequent Events and Subsequently Discovered Facts. Michael Ewing is auditing the financial statements of Dallas Company for the year ended December 31, 2014. In concluding the process of gathering...
-
In writing about types of control, William Ouchi said, "The Market is like the trout, and the Clan is like the salmon, each a beautiful highly specialized species which requires uncommon conditions...
-
What is Circular 230?
-
Consider a dataset consisting of 20 observations with the following summary statistics: \(\bar{x}=0, \bar{y}=9, s_{x}=1\), and \(s_{y}=10\). You run a regression using using one variable and...
-
Sentry, Inc. was started on January 1, Year 1. Year 1 Transactions 1. Acquired $20,000 cash by issuing common stock. 2. Earned $62,000 of revenue on account. 3. On October 1, Year 1, borrowed $12,000...
-
What is the output of the following C program when it is run as "a.out 1 2 3"? 4 5 7 MAS698 1 #include 2 9 10 11 12 13 } } #include int yMethod(int a[]) { a-(4,5,6,7,8); return...
-
The G. Saussy Manufacturing company is putting out four new electronic components. Each of Saussy's four plants has the capacity to add one more product to its current line of electronic parts. The...
-
Described why each of us believes what we do; Explain why we choose to respond in a particular way when faced with an ethical dilemma; Define how you will respond when confronted with an ethical...
-
a. The following table presents the three-stock portfolio. Stocks Portfolio Coefficient Expected Standard Weight Beta return deviation X0.250.500.400.07 Y0.250.500.250.05 P0.501.000.210.07 Variance...
-
Describe a change experience that you have had or are experiencing now. Point out how some of the 12 Change Principles relate. explain why specific things went well and what is, or was, problematic?
-
Do you foresee that cybersecurity industry will experience fast growth in the next 4 years? and why?
-
Suppose spot silver is selling for $1,000 per ounce. It will either rise by 10% or fall by 10% over the next period. The interest rate over the period is 5%. 1) What is the value of a European call...
-
Explain to me in details that you understand these three topics. 1) Hard News and Soft News 2) The chains of media production. The different jobs that are involved in making a tv show and/or movie 3)...
-
Determine the size of relevant biological unit if the sewage flow is 4.5 MLD with recirculation factor as unity. If for the given BOD, the removal efficiency is 30% in primary sedimentation tank,...
-
Periwinkle Company is a multinational organization. Its Parts Division is located in Lavender Land, while its Assembly Division is located in North Orchid. During the current year Periwinkle Companys...
-
Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest rate of 10% per year.
-
All publicly traded domestic companies use EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, to make the majority of their filings with the SEC. You can access EDGAR at...
-
Define each of the following retail terms: initial markup, additional markup, markup cancellation, markdown, markdown cancellation.
-
Input information from the SBA Personal Financial Statements given to Sharptop Bank into a spreadsheet. a. Separate personal items (e.g., residence) from business items (e.g., inventory). b....
-
Compare your recalculated ending inventory to that given to Sharptop Bank and to Southern Appalachian Insurance. Is either estimated ending inventory materially different from that reported on the...
-
What accuracy certifications on the tax return and bank financial statement address providing materially inaccurate information?
Study smarter with the SolutionInn App