The financial statements of P&G are presented in Appendix B. The Company's annual report, including the notes to the financial statements, is available atP&G Annual Reports. Refer to P&G's financial statements and the accompanying notes and answer the following questions:

1. How does P&G value its inventories? Which inventory costing method does P&G use as a basis for reporting its inventories?
2. How does P&G report its inventories on the balance sheet? In the notes to the financial statements, what three descriptions are used to classify its inventories?
3. What costs does P&G include in Inventory and Cost of Products Sold?
4. What was P&G's inventory turnover in 2017? What is its gross profit percentage? Evaluate P&G's inventory turnover and its gross profit percentage.