The Foxworthy Corporation Uses a Periodic Inventory System and the LIFO

question 17

Essay

The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 40,000 units consisted of the following, listed in chronological order of acquisition:
24,000 units at a cost of $6.00 per unit = $144,000
16,000 units at a cost of $7.00 per unit = 112,000

During 2018, inventory quantity declined by 18,000 units. All units purchased during 2018 cost $8.00 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.

---

Definitions:

Stress Hormones

Chemicals released by the body in response to stress, including cortisol and adrenaline, which prepare the body to face a threat or flee to safety.

Dyslexia

A learning disorder characterized by difficulty reading due to problems identifying speech sounds and learning how they relate to letters and words.

Identical Twin

Twins who originate from a single fertilized egg, sharing 100% of their genes and typically their appearance.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often involving delusions and hallucinations.