Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 22

Financial reporting, manufacturing firm-Internet assignment Campbell Soup Company provides access to its annual reports online at campbellsoup.com. The annual reports are found in the "Our Company/Investor Center/Financial Information/Annual Reports" area of its website. Locate the following information in the annual reports provided for 2014, 2013, and 2012:
1. From the supplementary data to the consolidated financial statements, find the composition of the beginning and ending inventory for each of the following accounts: Raw Material, Work in Process, and Finished Goods.
2. From the consolidated statements of income, find the amount for Cost of Sales.
3. From the consolidated balance sheets, find the amount for Inventories.
4. From the management's discussion and analysis, find the overview section that explains Gross Profit.
Required:
a. Calculate the cost of goods manufactured for 2014, 2013, and 2012.
b. Calculate the total amount of combined cost incurred in 2014, 2013, and 2012 for raw material, direct labor, and manufacturing overhead.
c. From the 2014 "Management's Discussion and Analysis of Financial Condition and Results of Operations," identify the ratio of cost of sales to net sales for 2014, 2013, and 2012. Comment on the overall trend.
d. Review Chapter 11 if necessary and calculate the inventory turnover and day's sales in inventory for 2014, 2013, and 2012. Comment on the overall trend.