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.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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.
Transcribed Image Text: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.
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