Computing and Disclosing a LIFO LiquidationSoutheast Inc. has maintained a periodic inventory system and the LIFO inventory method for over 20 years. The earliestlayers of LIFO inventory of 42,000 units date back 15 years. The company had beginning inventory (January 1) made up ofthe following three layers.Units Unit Cost Total Cost42,000 $20.00$840,00035,0007,00025.0050.00875,000350,000$2,065,000At its December 31 year-end, an involuntary liquidation of beginning inventory occurred. Beginning inventory dropped to56,000 units. The current replacement value of inventory is $50.a. What is the effect of the LIFO liquidation on after-tax profit or loss assuming a 25% tax rate? $b. What disclosure is required based on the answer to part a?The LIFO liquidation÷ModuleThe effect of the LIFO liquidation is to÷which in turn, causes taxes toCheckmust be disclosed in the notes to the financial statements.by $

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Description: Computing and Disclosing a LIFO LiquidationSoutheast Inc. has maintained a periodic inventory system and the LIFO inventory method for over 20 years. The earliestlayers of LIFO inventory of 42,000 units date back 15 years. The company had beginning

LIFO liquidation occurs when low cost recorded inventory is sold which results in low Cost of Goods…

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Southeast Inc. has maintained a periodic inventory system and the LIFO inventory method for over 20 years. The earliest layers of LIFO inventory of 42,000 units date back 15 years. The company had beginning inventory (January 1) made up of the following three layers.

Southeast Inc. has maintained a periodic inventory system and the LIFO inventory method for over 20 years. The earliest layers of LIFO inventory of 42,000 units date back 15 years. The company had beginning inventory (January 1) made up of the following three layers.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.4.1P: Inventory by three cost flow methods Details regarding the inventory of appliances on January 1,...

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View previous attem Required information Intercontinental Inc., uses a periodic inventory system. At the end of Year 2, the accounting records provided the following information relating to one of its products. Unit Units 1,830 Cost Inventory, December 31, Year 1 $6 For Year 2: Purchase, March 21, Year 2 Purchase, August 1, Year 2 Inventory, December 31, Year 2 6,200 $5 4,070 $3 2,910 What is the amount of ending Inventory and cost of goods sold under the FIFO inventory costing method? (Do not round Intermedlate calculations. Round your final answers to the nearest dollar amount.) Multiple Choice Ending inventory = $2,910; Cost of goods sold = $9,190 f1040 Schedul...pdf Form8829 (1).pdf Form 1040Sch....pdf Form1040 Sch...pdf MacBook Air
Required information [The following information applies to the questions displayed below.] During the year, TRC Corporation has the following inventory transactions. Date Transaction Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase yerme, oun per unit" to 4 decimal places and all other answers to the nearest whole number.) Weighted Average Cost Beginning Inventory Purchases Total For the entire year, the company sells 443 units of inventory for $67 each. Apr 07 Jul 16 Oct 06 Cost of Goods Available for Sale Cost of Goods Available for Sale # of units 57 137 207 117 518 Cost per unit 209 0000 $ Sales revenue Gross profit $ 2,793 Number of Units 57 137 207 117 518 6.987 11,178 6,435 27,393 #of units Sold Cost per Unit Unit Cost $49 Answer is complete but not entirely correct. Cost of Goods Sold Weighted Average Cost 51 54 55 Cost of Goods Sold 443S 209.0000 $ 23,682 $ 29,681 $ 5,999 X Total Cost $ 2,793 6,987 cerve, and you to na Average Cost 11,178 6,435…
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