The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product.Beginning inventory of 40,000 units consisted of the following,listed in chronological order of acquisition:
During 2016,inventory quantity declined by 18,000 units.All units purchased during 2016 cost $8.00 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.

Question

The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product.Beginning inventory of 40,000 units consisted of the following,listed in chronological order of acquisition:  
During 2016,inventory quantity declined by 18,000 units.All units purchased during 2016 cost $8.00 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.

Quizplus · Accepted Answer

The Answer of The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product.Beginning inventory of 40,000 units consisted of the following,listed in chronological order of acquisition:  
During 2016,inventory quantity declined by 18,000 units.All units purchased during 2016 cost $8.00 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 Foxworthy Corporation Uses a Periodic Inventory System and the LIFO