The following data are available for Lion's Share Company:
The company has experienced a temporary LIFO liquidation by not maintaining the base year inventory of 20,000 units.The company uses a perpetual inventory system.
Prepare the entries to account for the temporary liquidation and the replacement of the liquidated units assuming that 8,000 units will be replaced at $1.60 per unit

Question

The following data are available for Lion's Share Company:
  The company has experienced a temporary LIFO liquidation by not maintaining the base year inventory of 20,000 units.The company uses a perpetual inventory system.
Prepare the entries to account for the temporary liquidation and the replacement of the liquidated units assuming that 8,000 units will be replaced at $1.60 per unit

Quizplus · Accepted Answer

The Answer of The following data are available for Lion's Share Company:
  The company has experienced a temporary LIFO liquidation by not maintaining the base year inventory of 20,000 units.The company uses a perpetual inventory system.
Prepare the entries to account for the temporary liquidation and the replacement of the liquidated units assuming that 8,000 units will be replaced at $1.60 per unit

The Following Data Are Available for Lion's Share Company