The following is an excerpt from a conversation between Evan Eberhard, the warehouse manager for...
50.1K
Verified Solution
Link Copied!
Question
Accounting
The following is an excerpt from a conversation between Evan Eberhard, the warehouse manager for Greenbriar Wholesale Co. and its accountant, Marty Hayes. Greenbriar operates a large regional warehouse that supplies produce and other grocery products to grocery stores i smaller communities. Evan: Marty, can you explain what is going on here with those monthly statements? Marty: Sure, Even. How can I help you? Evan: I don't understand this last-in, first-out inventory procedure. It just doesn't make sense. Marty: Well, what it means is that we assume that the last goods we receive are the first ones sold. So the inventory is made up of the items w purchased first. Evan: 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. Marty: Evan, you don't understand. We only assume that the products we distribute are the last ones received. We don't actually have to distribute the goods in this way. Evan: I always thought that accounting was supposed to show what really happened. It all sounds like "made believe" to me! Why not report what really happens? Respond to Evan's concerns
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
