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The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 62,000 units consisted of
The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 62,000 units consisted of the following, listed in chronological order of acquisition:
35,000 units at a cost of $5.00 per unit = | $ | 175,000 | |
27,000 units at a cost of $6.00 per unit = | 162,000 | ||
During 2018, inventory quantity declined by 30,100 units. All units purchased during 2018 cost $7.00 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.
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