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.

Q: Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception…

A:

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Dollar-Value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: On January 2020, Roel Corp. Has the following inventory purchases.                     January…

A: FIFO is first in first out inventory valuation method in which inventories purchased at first will…

Q: Hogan Industries had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1,…

A: Lets understand the basics. Gross profit is a profit generated from the sales. Gross profit = Sales…

Q: Alfa INC began January 2021 with 20 units of iron inventory that cost 15 euro each. During January,…

A: In FIFO method , The inventory bought first are sold first. In LIFO method , the inventory bought…

Q: During 2021, Claneverium Corporation transferred inventory from its home office to its Laguna branch…

A: Working:

Q: Trini Company had the following transactions for the month.   Number of Units Cost per Unit Total…

A: Average cost per unit = Total cost of Goods available for sale / Total no. of units available for…

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Cost of goods sold (LIFO) = 8000 units purchased for $40 per unit + 1500 units from beginning…

Q: Over a four-year period, Jackie Corporation reported the following series of gross profits.…

A: Gross profit: It can be defined as the difference between the cost of goods sold and the net sales…

Q: the following units of an item were available for sale during the year: Beginning inventory 25…

A: Solution-1                                               Fifo Mehod   Sno Receipt Issue Balance…

Q: Altira Corporation provides the following information related to its merchandise inventory during…

A: INTRODUCTION PERPETUAL INVENTORY SYSTEM Perpetual inventory system is the method of recording…

Q: Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods…

A: (1) Compute the Sparrow's ending inventory and cost of goods sold using the retail inventory method…

Q: Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright…

A: Total units available for sale = 44+71+172 = 287 units Total cost of goods available for sale =…

Q: Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since…

A: SOLUTION WORKING NOTES   COMPUTATION OF EFFECT NET INCOME AFTER CHANGE- AVERAGE COST PER UNIT =…

Q: The inventory records of Kiwi Company show the following purchases during the first quarter…

A:

Q: At the beginning of the current period, Viraat Industries, which uses a periodic inventory system,…

A: a. Cost of goods sold = Beginning Inventory units + Purchase #1 units + Purchase #2 40 units =…

Q: Baldor Company reports inventory at cost of $72,000 and retail of $156,000 on January 1, 2020.…

A: Retail Method: This is a method used to determine the relationship between the cost price and the…

Q: The inventory and purchases data of UNIWIDE Company for the last quarter of 2021 are as follows:…

A: Under FIFO method the oldest products in inventory have been sold first.

Q: On January 2020, Roel Corp. Has the following inventory purchases…

A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method.

Q: A Shirts Company uses a periodic inventory system. During the first year of operations, the company…

A: Formula: weighted average cost per unit = Total purchase value / Total units Division of total…

Q: Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: Businesses that employ the LIFO Inventory Costing Method sell their old inventory stock through the…

Q: The inventory records of Cattle Company show the following purchases during the first quarter…

A: FIFO means the first in first out which means that goods purchased first will be sold first.…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: Last in First out (LIFO) is one of the inventory valuation methods in which the latest inventory…

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Particulars No. of units Rate per unit Total cost 9,500 units sold 8,000 $40 $320,000…

Q: Pear Company recorded the following data pertaining to one of its inventory items during January…

A: Moving average cost is a method of inventory valuation. This method computes the unit cost every…

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Inventory: it refers to all the items, goods, merchandise, and materials held by a business for…

Q: Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: Under the LIFO method, the goods which are purchased in the last are sold first. The ending…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: First-in-First-Out (FIFO): In First-in-First-Out method, the cost of initial purchased items are…

Q: NewCorp reported $367,000 of inventory on January 1 when the company decided to adopt Dollar-Value…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: On January 1, 2020, Temple Company adopted the dollar-value LIFO method for its one inventory pool.…

A: The question is based on the concept of Financial Accounting.

Q: pright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made…

A: Using average method, the cost per unit is calculated as total cost of goods available for sale…

Q: At the beginning of the current period, Viraat Industries, which uses a periodic inventory system,…

A:

Q: XYZ Company Began the year 2020 with 600 units of products in its January 1 Inventory costing BD35…

A: Date Description units cost per unit Total Cost 1Jan Opening Inventory 600 35 600*35=2100 4Jan…

Q: Inventory records for Herb's Chemicals revealed the following:   March 1, 2021, inventory: 1,000…

A: Formula: Ending inventory = Cost of goods sold available for sale - Cost of goods sold

Q: Causwell Company began 2021 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: LIFO  means last in first out.  Here the goods which come last are issued first. So in rising prices…

Q: On January 2020, Tony Corporation has the following inventory purchases: January 2 Bought 5,750…

A: Inventory costing methods are those methods which are used for valuation and costing of inventory.…

Q: Montero Company maintains a perpetual inventory system and sells all its inventories at a price of…

A: Under FIFO method, goods purchased first are to be sold first and newer goods are left in stock or…

Q: Vaughn Company had 100 units in beginning inventory at a total cost of $12,000. The company…

A: Total cost of goods available for sale = Beginning inventory + Purchases = $12,000 + $30,000 =…

Q: Forester Company has five products in its inventory. Information about the December 31, 2021,…

A: Normally the inventory is valued  at costs but if the selling price drops down  below costs ,as…

Q: During 2012, a company sells 200 units of inventory for $50 each. The company has the following…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Grotesque Company which employed the FIFO retail method provided the following inventory data: 2020…

A: The retail inventory method calculates the ending inventory by multiplying the retail closing stock…

Q: Causwell Company began 2018 with 10,000 units of inventory on hand. The cost of each unit was $5.00.…

A: 1.

Q: The 2021 inventory data for Island Corporation is presented below. Assume that Island uses periodic…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Bojangle Incorporated adopted the dollar-value LIFO method last year. Last year's ending inventory…

A: There are various methods of inventory valuation. FIFO-First In First Out LIFO-Last in first Out…

Q: The following are information about purchases and sales for main product of AMEER Inc. for year…

A: What is the Weighted Average Costing Method? When using the weighted average method, divide the cost…

Q: Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was…

A: Last-In, First-Out (LIFO):   In Last-in-First-Out method, the cost of last purchased items are sold…

Q: Encantadia Company had the following inventories on January 1, 2020: Inventory Cost Amihan 725,200…

A:

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: First-in-First-Out (FIFO): In First-in-First-Out method, the cost of initial purchased items are…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.