The financial statements of P&G are presented in Appendix B and in the WileyPlus Chapter 8 Resources. The Company’s complete annual report, including the notes to the financial statements, is available 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?
How does P&G report its inventories in the balance sheet?
What costs does P&G include in Inventory and Cost of Products Sold?
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.