Week 11 Discussion

Please read CA8-11. in the end of chapter materials of Chapter 8 and answer the related questions. A copy of this exercise is below for your convenience.

(LIFO Choices)

Wilkens Company uses the LIFO method for inventory costing. In an effort to lower net income, company president Mike Wilkens tells the plant accountant to take the unusual step of recommending to the purchasing department a large purchase of inventory at year-end. The price of the item to be purchased has nearly doubled during the year, and the item represents a major portion of inventory value.

Instructions

Answer the following questions.

(a) Identify the major stakeholders. If the plant accountant recommends the purchase, what are the consequences?

(b) If Wilkens Company were using the FIFO method of inventory costing, would Mike Wilkens give the same order? Why or why not?

THIS WAS HOW IT WAS POSTED ON MY DISCUSSION BOARD AND I JUST CHECKED THE TEXTBOOK AND IS EXACTLY LIKE THAT WITH NO CHART.