In this project case, you research inventory costing and inventory reporting on financial statements.
Instructions:
1.) The financial statements of P&G are presented in the Company's annual report, including the notes to the financial statements found at P&G Annual Reports. Refer to P&G's financial statements and the accompanying notes to address the following: How does P&G value its inventories? Which inventory costing method does P&G use as a basis for reporting its inventories?
2.) How does P&G report its inventories in the balance sheet? In the notes to its financial statements what three descriptions are used to classify its inventories?
3.) What costs does P&G include in Inventory and Cost of Products Sold?
4.) What was P&G's inventory turnover in 2014? What is its gross profit percentage? Evaluate P&G's inventory turnover and its gross profit percentage.