for all students.
The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for
its one product. Beginning inventory of 20,000 units consisted of the following, listed in
chronological order of acquisition:
12,000 units at a cost of $8.00 per unit = $96,000
8,000 units at a cost of $9.00 per unit = 72,000
During 2021, inventory quantity declined by 10,000 units. All units purchased during 2021 cost
$12.00 per unit.
Calculate the before-tax LIFO liquidation profit or loss that the company would report in a disclosure
note, assuming the amount determined is material.
LIFO liquidation profit