fifo

NO.PZ202308140300007507 问题如下 Hans Annan, CFa fooanbeverage analyst, is reviewing Century Chocolate’s inventory policies part of his evaluation of the company. Century Chocolate, basein Switzerlan manufactures chocolate procts anpurchases anresells other confectionery procts to complement its chocolate line. AnnvisiteCentury Chocolate’s manufacturing facility last year. He learnethcacbeans, importefrom Brazil, represent the most significant rmaterianththe work-in-progress inventory consists primarily of three items: roastecacbeans, a thipaste procefrom the beans (callechocolate liquor), ana sweetenemixture thnee to “conche to prochocolate. On the tour, Annlearneththe conching process ranges from a few hours for lower-quality procts to six ys for the highest-quality chocolates. While there, Annsthe facility’s climate-controllearea where manufacturefinisheprocts (cocoa anchocolate) anpurchasefinishegoo are storeprior to shipment to customers. After touring the facility, Annha scussion with Century Chocolate’s CFO regarng the types of costs thwere incluin eainventory category.Annhaskehis assistant, Joanna Kern, to gather some preliminary information regarng Century Chocolate’s financistatements aninventories. He also askeKern to calculate the inventory turnover ratios for Century Chocolate ananother chocolate manufacturer for the most recent five years. Annes not know Century Chocolate’s most recompetitor, so he asks Kern to some researanselethe most appropriate company for the ratio comparison.Kern reports bathCentury Chocolate prepares its financistatements in accornwith IFRS. She tells Annththe polifootnote states thrmaterials anpurchasefinishegoo are valuepurchase cost, wherework in progress anmanufacturefinishegoo are valueproction cost. Rmateriinventories anpurchasefinishegoo are accountefor using the FIFO metho anthe weighteaverage cost methois usefor other inventories. allowanis establishewhen the net realizable value of any inventory item is lower ththe value calculatepreviously.Kern provis Annwith the selectefinancistatements aninventory ta for Century Chocolate. The ratio exhibit Kern preparecompares Century Chocolate’s inventory turnover ratios to those of Gorn’s Gooes, a US-basecompany. Annreturns the exhibit antells Kern to selea fferent competitor threports using IFRS rather thUS GAAP. ring this initireview, Annasks Kern why she hnot incatewhether Century Chocolate uses a perpetuor a perioc inventory system. Kern replies thshe learnethCentury Chocolate uses a perpetusystem but not inclu this information in her report because inventory values woulthe same unr either a perpetuor perioc inventory system. Anntells Kern she is wrong anrects her to researthe matter.While Kern is revising her analysis, Annreviews the most recent month’s Cocoa Market Review from the InternationCocoa Organization. He is awn to the statement th“the ICily price, averaging prices in both futures markets, reachea 29-yehigh in US llterms ana 23-yehigh in speciawing rights (Ss) terms (the S unit comprises a basket of major currencies usein internationtra: US llar, euro, pounsterling, anyen).” Annmakes a note thhe will neeto factor the potenticontinuation of this treninto his analysis.Exhibit 1: Century Chocolate FinanciStatementsQ. If the trennotein the ICreport continues anCentury Chocolate plans to maintain constant or increasing inventory quantities, the most likely impaon Century Chocolate’s financistatements relateto its rmaterials inventory will be: A.a cost of sales thmore closely reflects current replacement values. B.a higher allocation of the totcost of goo available for sale to cost of sales. C.a higher allocation of the totcost of goo available for sale to enng inventory. C is correct. Using the FIFO methoto value inventories when prices are rising will allocate more of the cost of goo available for sale to enng inventories (the most recent purchases, whiare higher costs, are assumeto remain in inventory) anless to cost of sales (the olst purchases, whiare lower costs, are assumeto solfirst). COGS是包括goo available for sale和cost of sales两部分？不是销售出去的才计提成本吗？