Three pharmacy giants, CVS Health, Walmart, and Walgreens Boots Alliance each use a different inventory costing method. CVS uses weighted-average cost, Walmart uses FIFO, and Walgreens uses LIFO. Here is a hypothetical example that highlights the potential differences in income statements and balance sheets that could arise simply because of the use of a different […]
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Tag Archives: teaching accounting
Are the articles of secondhand clothing offered for sale on ThredUp’s online store included in inventory on ThredUp’s balance sheet?
September 29, 2022 
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ThredUp Inc. is a startup online consignment and thrift store. Customers can buy like-new, carefully vetted brand-name clothing from ThredUp’s online store at discounts of up to 90% off of the original retail prices. Customers can also send in their unwanted clothing articles for ThredUp to resell. tThredUp’s professional buyers go through the articles of […]
Continue readingCrossword puzzle to review job costing in managerial accounting
September 28, 2022 0 Comments
Below are links to a crossword puzzle to review job costing in managerial accounting. Both links are to the same puzzle, but one has a solution enabled and the other does not. Job costing crossword puzzle: Share this link with your students to have them work on the puzzle without access to the solution. Job […]
Continue readingWould job costing or process costing be used for gummy bears produced at the US Haribo manufacturing plant?
September 27, 2022 0 Comments
Haribo has manufactured gummy bears since 1920. Those bears are currently made in 16 plants around the world. Starting in late 2022 or early 2023, those gummy bears will also be made in the US when Haribo finishes construction on its new plant in Pleasant Prairie, Wisconsin. Worldwide, about 100 million gummy bears are made […]
Continue readingFree webinar: “Low Man on the Totem Pole – How I Became a White-Collar Criminal”
September 26, 2022 9 Comments
The Akron chapter of the Institute of Management Accountants (IMA) is sponsoring a webinar on white-collar crime – “Low Man on the Totem Pole – How I Became a White-Collar Criminal.” The webinar is on Wednesday, October 19, 2022, from 6:30 – 8 pm Eastern. Registration is at this link. I cannot emphasize enough what […]
Continue readingWhen will Ford recognize revenue in the reservation, order, and delivery process for its currently sold-out Ford F-150 Lightning electric truck?
September 19, 2022 2 Comments
The Ford Motor Company (NYSE: F) is selling an electric version of its F-150 pickup truck, the F-150 Lightning electric truck. Ford cannot keep up with demand; it has taken orders for its entire 2022 production capacity and has closed orders for the 2022 model. Ford has not yet begun taking reservations for the 2023 […]
Continue readingWhat quality costs will the J.M. Smucker Company incur from its recall of Jif peanut butter?
September 15, 2022 2 Comments
The J.M. Smucker Company (Smuckers) issued a voluntary recall in 2022 for several Jif peanut butter products manufactured in its Lexington, Kentucky, manufacturing facility. Jif peanut butter products were potentially linked to a multistate outbreak of Salmonella. Salmonella is an organism that cause serious and sometimes fatal infections in people. This recall potentially covers millions […]
Continue readingWhat internal controls might have prevented an Anderson Community School bookkeeper from stealing more than $1 million?
September 12, 2022 0 Comments
The Anderson Community School Corporation hired Carla Burke in 1998 and then made her the food service department bookkeeper in 2006. She worked as the bookkeeper until she retired in 2019. Burke was responsible for maintaining the records for the school lunch fund. She reconciled the bank account, maintained vendor invoices, prepared checks to send […]
Continue readingWould sweetFrog use job costing or process costing in calculating the cost of a customer’s cup of frozen yogurt and toppings?
September 6, 2022 8 Comments
sweetFrog is a frozen yogurt restaurant franchise with over 300 locations in the United States and several more international locations. Customers select the flavor of frozen yogurt they want and fill their cup from the self-serve machine with the desired amount of the frozen yogurt. Next the customer will proceed to the toppings bar, where […]
Continue readingWhat closing entries would Wendy’s have made in 2021 based on its trial balance?
August 31, 2022 1 Comment
The Wendy’s Company (NASDAQ: WEN) is a fast-food chain and is a publicly held corporation. Wendy’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31. Wendy’s 2021 fiscal year ended January 2, 2022, and its 2020 fiscal year ended January 3, 2021. To follow is a condensed […]
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