In the Following Information Is Taken from the 2017 Annual

question 32

Essay

In the following information is taken from the 2017 annual reports of Focal Point Industries.(All figures have been rounded to millions of dollars. )

$$\begin{array} { l r r } \text { Balance Sheet Data } & \text { May 31, 2017 } & \text { May 31, 2016 } \\\text { Raw materials } & \$ 25.8 & \$ 52.1 \\\text { Work in process } & 44.8 & 34.7 \\\text { Finished goods } & \underline { 1,132.7 } & \underline { 1,303.8 } \\\text { Inventories at FIFO } & 1,203.3 & 1,390.6 \\\text { Adjustment to LIFO } & 5.6 & 21.9\end{array}$$ $\text { Cash Flow Data (Operating Activities) }$
$\begin{array}{lrr}\text { Net income } & \$ 451.4 & \$399.9\\\text { Additions to net income: } & & \\\text { Depreciation } & 198.2 & 100.2 \\\text { Amortization } & 30.6 & 49.0\\\text { Changes in assets and liabilities:}\\\text { Inventories}&197.3& (58.0) \\\text { Accounts payable and other}& (170.4) &(70.1)\end{array}$
Required
(1)Describe what costs are included in each of the three types of inventories listed above for Focal Point Industries.
(2)Even though the footnote describing the inventory costing method(s)used by Focal Point Industries is not provided above,what can you conclude about the inventory costing method(s)used by the company?

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Definitions:

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The principle that our minds operate on two different levels simultaneously: automatic, unconscious processing and conscious, deliberate processing.

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Scientists who study the psychological adaptations of humans to the changing physical and social environment, often focusing on how evolution has shaped the mind and behavior.

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Psychologists who focus on observable behaviors and the ways in which environment determines behavior, excluding mental processes.

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Scientists who specialize in studying the neural mechanisms underlying cognition, including thoughts, memories, and language.