Question

Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $780,000 (39,000 units at $20 ea

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Liquidated units = 121,000 - 118,000 = 3,000 units

Lifo liquidation profit (Loss)

= [3,000*(29-20)] - income tax @25%

= 27,000 - 25%

= 20,250

Add a comment
Know the answer?
Add Answer to:
Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was...

    Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $500.000 (20,000 units at $25 each). During 2021, 80,000 units were purchased, all at the same price of $30 per unit. 85,000 units were sold during 2021. Calculate the December 31, 2021, ending inventory and cost of goods sold for 2021 based on a periodic inventory system. COGS - Periodic LIFO Cost of Goods Available for Sale Cost Cost of Goods # of units...

  • The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its...

    The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 21,600 units consisted of the following, listed in chronological order of acquisition: 12,800 units at a cost of $8.00 per unit = $102,400 8,800 units at a cost of $9.00 per unit = 79,200 During 2021, inventory quantity declined by 11,600 units. All units purchased during 2021 cost $12.00 per unit. Required: Calculate the before-tax LIFO liquidation profit or...

  • The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its...

    The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 22,200 units consisted of the following, listed in chronological order of acquisition: 13,100 units at a cost of $9.00 per unit = $117,900 9,100 units at a cost of $10.00 per unit = 91,000 During 2021, inventory quantity declined by 12,200 units. All units purchased during 2021 cost $13.00 per unit. Required: Calculate the before-tax LIFO liquidation profit or...

  • The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its...

    The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 23,400 units consisted of the following, listed in chronological order of acquisition: 13,700 units at a cost of $8.00 per unit = $109,600 9,700 units at a cost of $9.00 per unit = 87,300 During 2021, inventory quantity declined by 13,400 units. All units purchased during 2021 cost $12.00 per unit. Required: Calculate the before-tax LIFO liquidation profit or...

  • The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its...

    The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 23,200 units consisted of the following, listed in chronological order of acquisition: 13,600 units at a cost of $9.00 per unit = $122,400 9,600 units at a cost of $10.00 per unit = 96,000 During 2021, inventory quantity declined by 13,200 units. All units purchased during 2021 cost $13.00 per unit. Required: Calculate the before-tax LIFO liquidation profit or...

  • Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The...

    Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2021 with $77,200 in inventory of its only product. The beginning inventory consisted of the following layers: 5,600 units at $5 per unit 8,200 units at $6 per unit Total $28,000 49,200 $77,200 During 2021, 7,600 units were purchased at $7 per unit and during 2022, 10,200 units were purchased at $8 per unit. Sales, in units, were 10,200 and 18,400 during...

  • Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic...

    Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company's records under this system reveal the following inventory layers at the beginning of 2021 (listed in chronological order of acquisition): 10,500 units 510 15,500 units $15 Beginning inventory $105,000 232,500 $337,500 During 2021, 31,000 units were purchased for $20 per unit. Due to unexpected demand for the company's product, 2021 sales totaled 39,000 units at various prices, leaving 18,000 units...

  • The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its...

    The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 22,600 units consisted of the following, listed in chronological order of acquisition 13,300 units at a cost of $9 00 per unit $119,700 9,300 units at a cost of $10.00 per unit 93,000 During 2016, inventory quantity declined by 12,600 units All units purchased during 2016 cost $15.00 per unit Required Calculate the before-tax LIFO liquidation profit or loss...

  • Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The...

    Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with $70,300 in inventory of its only product. The beginning inventory consisted of the following layers: 4, 100 units at $7 per unit 5, 200 units at $8 per unit $28, 700 41, 600 $70, 300 Total During 2018, 6,100 units were purchased at $9 per unit and during 2019, 7,200 units were purchased at $10 per unit. Sales, in units,...

  • Taylor Corporation reports Inventory and cost of goods sold based on calculations from a LIFO periodic...

    Taylor Corporation reports Inventory and cost of goods sold based on calculations from a LIFO periodic Inventory system. The company's records under this system reveal the following inventory layers at the beginning of 2021 (listed in chronological order of acquisition: 15,000 units $10 20,000 units $15 Beginning inventory $150,000 300,000 $450,000 During 2021, 40,000 units were purchased for $20 per unit. Due to unexpected demand for the company's product, 2021 sales totaled 49,000 units at various prices, leaving 26,000 units...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT