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Unformatted text preview: earnings and also deceiving investors and tax collecting agencies. Real World Case 8-8 a) Whole Foods Market, Inc. uses the LIFO method to value 93.6% of its inventory and FIFO to value the remaining inventory. b) COGS (FIFO) = COGS (LIFO) – (LIFO reserve at the end of the period - LIFO reserve at the beginning of the period) COGS (FIFO) = 5,277,310 – (27,100,000 – 32,700,000) COGS (FIFO) = 5,277,310 – ( ¯5,600,000) COGS (FIFO) = $10,877,310 c) = = Inventory Turnover Cost of salesAverage inventory , , ( , + , ÷ )= . 5 277 310 310 602 327 452 2 16 54 d) e) Source: http://sec.gov/Archives/edgar/data/865436/000110465909067266/a09-34257_110k.htm#Item8_FinancialStatementsAndSuppl_105920 f)...
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This note was uploaded on 08/14/2011 for the course ACC 305 taught by Professor B.forde during the Spring '11 term at Ashford University.
- Spring '11