Please

Covert lifo to FIFO thanks !

Deere & Company and CNH Global N in shree ugyor bwsiness segments. The fail ine of agricntbure ond rf emet and relat and dissriues fac hures and distribwmes a by hanisag cand timber watcrian a works and major retol owlets. The Rin warketed primarily shrowgh iepenlent retail dealer nerwork segmor primirily finances sales and leases by John Deere .kalm and constraction and forestry eyment Souree Compumy Fom 10-)sd a CNH Glohal is a global. full-Iine company in both the ogrieutural tion services. We market our products globally through our hwo highly recogmise Holland As of December 31, 2012, we were our operations into three business segments: agricultural our products in 37 fac Waries throghoat fe distribusorsOn November 25, 2012 Fot Industrial and CNH entonerwork of combine the businesses of Flat Inudesrial ond CNH Source: Co a definitive merger ogre Form Learning Objectives Explain how cost flow assumptions affect inventory balances and . Analyze the activity in inventory and related accounts. Consider the financial statement effects of using different cost flow Understand the risks and benefits of holding inventory cost of goods sold. ons and of Intematio Financial Reporting Standards (IFRS) for inventory . Restate a company's inventory balances and cost of sales to Calculate inventory ratios under different cost flow asunporenlec IFRS-like Refer to the fiscal 2012 financial statements and notes of Deere & C that Deere has an October 31 year end and CNH a December 31 year assumptions. ompany and CNH Globel NV end Concepts a. Explain the risks and benefits associated with holding invent b Note l 5 reveals that the balance sheet inventory amount consists of three types of inven types of costs do you expect to be in the raw materials inventory? In the work-in-process irvaten e. Why do companies use cost flow assumptions to determine inventory cost? What ost fr In the finished goods inventory? assumption(s) does Deere and Company use to determine inventory cost? uses the first-in, first-out (FIFO) cost flow assumption to measure its inventories. In genenil tems typically decrease over time? d. Assume that prices that Deere and CNH Global pay for inventory typically increase over tine C n how do the balance shect values for inventories of the two companies differ due to their cost assumptions? What numbers on the two ompanies income statements would differ? Whip Process e. Set up one T-account for Deere's total inventories (that is, combine the three inventory this analysis). Epter the 2011 (i.e., the opening 2012 balance) and 2012 ending hlanc account. Use information from the financtal Starements to recreate the activity that took account during fiscal 2012 and answer the following questions ales account for the entire cost of sales, Note that the income statement l a the T credits the total invenons C Copyright 2015 by Cambridge Business Publishers. LIC All rights reserved No part oty purpose without the written permuission of the publisher Deere & Company and CNH Global N.V.-Inventory of this publicartion