1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GuDViN [60]
3 years ago
12

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

entory of 22,000 units consisted of the following, listed in chronological order of acquisition: 13,000 units at a cost of $8.00 per unit = $104,000 9,000 units at a cost of $9.00 per unit = 81,000 During 2021, inventory quantity declined by 12,000 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.
Business
1 answer:
ddd [48]3 years ago
4 0

Answer:

$61,000

Explanation:

Given:

Beginning inventory = 22,000

13,000 units at a cost of $8.00 per unit = $104,000

9,000 units at a cost of $9.00 per unit = 81,000

inventory quantity declined by 12,000 units

All units purchased during 2021 cost = $12.00 per unit

Now,

Liquidation quantity = Beginning inventory - acquisition

thus,

20000 - 13000 = 7000  units at a cost of $8.00 per unit

20000 - 9000 = 11,000 units at a cost of $9.00 per unit

Total liquidation quantity = 7,000 + 11,000 = 18,000 units

LIFO profit for units at a cost  $8.00 per unit = Purchasing cost - unit cost

= $12 - $8 = $4

LIFO profit for units at a cost  $9.00 per unit = Purchasing cost - unit cost

= $12 - $9 = $3

Now,

The LIFO profit = 7,000 × $4 + 11,000 × $3

or

The LIFO profit = 28,000 + 33,000 = $61,000

Hence,

The before tax LIFO profit is $61,000

You might be interested in
Which of these types of buildings would not be found on the plaza principal?
scoundrel [369]

The Answer is 

"<span>family homes "

</span>

<span>“Family homes” would not be found on the plaza principal. However the other two types i.e. municipal building as well as cathedrals will be found on plaza principal. The common events or activities found at the plaza principal are fiestas or festivals and meeting with friends.</span>

3 0
3 years ago
The Walt Disney Company is world renowned for its destination resorts and theme parks. The company prides itself on providing th
rodikova [14]

Answer:

Those repairing the rides.

Explanation:

The Walt Disney Company uses a strategy to create a complete experience when visiting its destination resorts and theme parks. Disney's goal is to create a magical world, where it can win people over by the enchantment of its characters and shows.

For this strategy to be effective, there is a very adequate training of its employees, most of them are included as members of the cast, using fantasies of the iconic characters and assisting visitors and taking photos, making the experience more complete.

But in the case of the above question, the group of employees who are most likely to be considered the "ingroup" in the theme park are those who provide technical support to repair the tours, due to the fact that the application of their skills is more technical and less playful. , as most Disney employees must behave.

7 0
3 years ago
Read 2 more answers
Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department fol
8_murik_8 [283]

Explanation:

Equivalent units    

                                             Materials         Labor           Overhead  

Work in process inventory,       23,100.00        34,650.00   34,650.00  

beginning

Units started and completed  6,73,000.00    6,73,000.00  6,73,000.00  

Work in process inventory,     28,000.00     14,000.00           14,000.00  

ending

Equivalent units                   7,24,100.00      7,21,650.00     7,21,650.00  

First department cost per unit for first department    

                        Materials   Labor       Overhead        Total  

Current costs    11,94,765.00     2,88,660.00   5,05,155.00   19,88,580.00  

Equivalent units  7,24,100.00   7,21,650.00   7,21,650.00  

Cost per Equivalent unit   1.65      0.40           0.70         2.75  

The equivalent units for materials,labor and overhead are as follows:

                 Equivalent units

Materials   724,000

Labor         721,650

Overhead  721,650

In addition,the cost per unit for equivalent units are as follows:

Materials  1.65

Labor        0.40

Overhead 0.70

Total          2.75

7 0
3 years ago
Why does the risk of incorrect rejection result in an efficiency loss to the auditor?
Sever21 [200]
© 2017 Quizlet Inc.
8 0
3 years ago
Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual div
Colt1911 [192]

Answer:

There's an error in the numbers for this question; I found the correct one and pasted it below;

"Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $1.30 per share but all future dividends will be decreased by 2.75 percent annually. What is a share of this stock worth today at a required return of 15.5 percent? "

Explanation:

Use dividend discount model (DDM) to calculate the stock price

P0 = \frac{D0(1+g)}{r-g}

whereby,

P0 = Current price

D0 = Last dividend paid = 130

g = growth rate = -275% or -2.75 as a decimal

r = required return = 155% or 1.55 as a decimal

Next, plug in the numbers to the DDM formula above;

P0 = \frac{1.30(1-0.0275)}{0.155 + 0.0275} \\ \\ = \frac{1.2643}{0.1825} \\ \\ =6.9277

Therefore this stock is worth $6.93

6 0
3 years ago
Other questions:
  • Osion Electronics Inc. incurs a cost of $350 to produce one unit of a cell phone. The company's management has priced the produc
    12·1 answer
  • Akram owns a small farm. He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The in
    13·1 answer
  • Vasudevan Inc. recently reported operating income of $2.30 million, depreciation of $1.20 million, and had a tax rate of 25%. Th
    13·1 answer
  • You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know
    13·1 answer
  • Jeff has the opportunity to receive​ lump-sum payments either now or in the future. Which of the following opportunities is the​
    14·1 answer
  • Maker Co. discovered that in the prior year it incorrectly calculated depreciation expense and reported $75,000 in depreciation
    5·1 answer
  • One appraisal principle of value is based on the concept that the more a property or its components are in harmony with the surr
    12·1 answer
  • The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics Corporation.
    5·1 answer
  • Kathleen is considering expanding her dress shop. if interest rates rise she is:
    9·1 answer
  • In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!