K 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 ces 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.

K 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 ces 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.

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 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

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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.
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
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
4 ces Required information P7-3 (Algo) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow LO7-2, 7-3 [The following information applies to the questions displayed below.] At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $17.80 per unit: Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale P7-3 Part 4 Units 700 670 230 (560) (200) Amount $2,450 3,685 1,725 4. Between FIFO or LIFO, which method would produce the more favorable cash flow?
es w TB MC Qu. 8-73 (Static) 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): .40 units at $100 per unit . 70 units at $80 per unit • 170 units at $60 per unit Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. Ending inventory using the LIFO method is: Multiple Choice C $650. $600. $1,000. 80 F3 F4 < Prev L F6 13 of 16 # K F7 Next DII FA AA F9 F10 A
Ward Distribution Company has determined its year-end inventory on a LIFO basis at $320,000. Information pertaining to that inventory follows. Item Amount Estimated selling price $332,800 Estimated cost of disposal 16,000 Normal profit margin 48,000 Current replacement cost 304,000 What is the loss that Ward should recognize? Assume no previously recorded inventory holding loss. Select one: a. $0 b. $3,200 c. $16,000 d. $51,200 O
An analysis of the inventory owned by Owens Company as of the Company's fiscal closing date is shown in the following table. Market Value Per Unit $27 $55 $40 $30 Assuming Owens applies the lower-of-cost-or-market rule on an individual basis, the Company would be required to recognize an expense amounting to Item A B с D Quantity Cost Per Unit 300 $30 100 200 120 Multiple Choice O $2,800 $2,200 $1,100 $1,700 $50 $44 $25
! Required information Problem 9-7 (Algo) Retail inventory method; conventional and LIFO [LO9-3, 9-4] [The following information applies to the questions displayed below.] Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2021 operations is as follows: a. January 1, 2021, beginning inventory had a cost of $210,000 and a retail value of $260,000. b. Purchases during 2021 cost $1,467,000 with an original retail value of $2,330,000. c. Freight costs were $21,000 for incoming merchandise. d. Net additional markups were $240,000 and net markdowns were $170,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $26,000 of retail value. f. Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separate account at the net selling price. The balance in this account at the end of 2021 is $360,000. g. Sales to customers totaled $1,860,000 for the year. Problem 9-7…
Brief Exercise 8-16 (Algo) LIFO liquidation [LO8-6] Esquire incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the year was $780,000 (39,000 units at $20 each). During the year, 118,000 units were purchased, all at the same price of $29 per unit. 121,000 units were sold during the year. Assuming an income tax rate of 25%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements? LIFO liquidation profit (loss)
P7-3 (Algo) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow LO7-2, 7-3 [The following information applies to the questions displayed below.] At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $17.40 per unit: Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale P7-3 Part 3 Method Units 620 600 150 (480) (200) 3. Between FIFO or LIFO, which method would result in the lower income tax expense? Assume a 30 percent average tax rate. your answer to 2 decimal places.) LIFO Amount $3,255 4,200 1,350 Tax Savings
PROBLEM 1. Nyx Company had determined its December 31, 2021 inventory on a FIFO basis at P 410,000. Nyx records losses that result from applying the lower of cost or net realizable value. Information pertaining to that inventory follows: Estimated selling price Normal Profit margin Estimated disposal costs Current replacement cost P 400,000 60,000 20,000 260,000 1. How much loss should Nyx recognize at December 31, 2021?
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-2,900 units; cost $7.00 each. August 8 Purchased 14,500 units for $6.40 each. Sold 11,600 units for Purchased 8,700 units August 14 $12.90 each. August 18 for $6.00 each. August 25 Sold 10,600 units for $11.90 each. August 28 Purchased 4,900 units for $5.80 each. August 31 Inventory on hand-8,800 units. Exercise 8-14 (Algo) Part 1 Required: 1. 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 FIFO method. Perpetual FIFO: Beginning Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale…