I need help with CP 7-2.

& Projects Anstead Co. is experiencing a decrease in sales and operating income for the fiscal year end- ing October 31, 2014. Ryan Frazier, controller of Anstead Co., has suggested that all orders received before the end of the fiscal year be shipped by midnight, October 31, 2014, even if the shipping department must work overtime. Since Anstead Co. ships all merchandise FOB shipping point, it would record all such shipments as sales for the year ending October 31, 2014, thereby offsetting some of the decreases in sales and operating income. CP 7-1 Ethics and professional conduct in business Discuss whether Ryan Frazier is behaving in a professional manner. CP 7-2 LIFO and inventory flow The following is an excerpt from a conversation between Paula Marlo, the wareho manager for Musick Foods Wholesale Co., and its accountant, Mike Hayes. Musick Foods operates a large regional warehouse that supplies produce and other grocery products to grocery stores in smaller communities. Paula: Mike, can you explain what's going on here with these monthly statements? use Mike: Sure, Paula. How can I help you? Paula: I don't understand this last-in, first-out inventory procedure. It just doesn't make sense. Mike: Wel, what it means is that we assume that the last goods we receive are the first ones sold. So the inventory consists of the items we purchased first. Paula: Yes, but that's my problem. It doesn't work that way! We always distribute the oldest produce first. Some of that produce is perishable! We can't keep any of it very long or it'll spoil. Inventories Mike: Paula, you don't understand. We only assume that the products we distribute are the last ones receive don't actually have to distribute the goods in this way. d. We aula: I always thought that accounting was supposed to show what really happened.Itall sounds like"make oelieve" to me! Why not report what really happens? Respond to Paula's concerns. CP 7-3 Costing inventory Golden Eagle Company began operations in 2014 by selling a single product. Data on purchases and sales for the year were as follows: Purchases: Date April 6 May 18 June 6 July 10 August 10 October 25 November 4 December 10 Units Purchased 31,000 33,000 40,000 40,000 27,200 12,800 8,000 8,000 200,000 Unit Cost $36.60 39.00 39.60 42.00 42.75 43.50 44.85 48.00 Total Cost $1,134,600 1,287,000 1,584,000 1,680,000 1,162,800 556,800 358,800 384,000 $8,148,000 Sales