his case is focused on a publicly traded company The Proctor and Gamble Company (P&G)’s financial reporting. You will analyze the policies they use for inventory costing and reporting inventory in their financial statements.
Instructions
The financial statements of P&G are presented in Appendix B. The Companys complete annual report, including the notes to the financial statements, is available at P&G Annual Reports. Refer to P&Gs financial statements and the accompanying notes and answer the following questions:
How does P&G value its inventories? Which inventory costing method does P&G use as a basis for reporting its inventories?
How does P&G report its inventories on the balance sheet? In the notes to the financial statements, what three descriptions are used to classify its inventories?
What costs does P&G include in Inventory and Cost of Products Sold?
What was P&G’s inventory turnover in 2017? What is its gross profit percentage? Evaluate P&G’s inventory turnover and its gross profit percentage.
https://www.pginvestor.com/corporate-profile/default.aspx?keyGenPage=1073748359
