...Darren Fedon - DLF0011 Case 04-4 Three Little Pigs, Inc. Background Three Little Pigs, Inc. (PIGS) is a provider of pork products to the food service industry and institutional markets in the U.S. PIGS develops and produces the majority of their hogs for internal processing (processed pork products) and while selling a portion for outside third parties (live hogs). During PIGS fiscal year 2003, an external factor has increased the supply of hogs on the market which in turn is pushing down futures prices. Management believes that this decline hog prices warrants reviewing their inventory because there may be a lower of cost or market issue. The basis for this assumption is the decline in futures prices in both the second and third quarters. However, the CEO believes that the price fluctuations are due to seasonality and thus temporary in nature, referencing the price recovery in the fourth quarter of the futures market and therefore impairment isn’t necessary. Issue PIGS management has concerns about how to evaluate their pig inventory for impairment. Two issues were raised related to inventory evaluation and reporting of the impairment (if applicable). The two issues are as follows: 1) The options for inventory evaluation presented to them are as follows a) total inventory basis, b) inventory category, c) end product category or d) individual basis. 2) Once a correct method has been selected; management will need to determine if impairment is needed,...
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...BACKGROUND Three Little Pigs, Inc. (PIGS) is a provider of pork products. The Company produces approximately 4.1 million hogs per year; the majority of which are internally processed. However, a portion of the hogs produced are sold to outside third parties. PIGS does not have any commitments to sell live hogs to third parties and it does not hedge its live hogs through commodity futures contracts. PIGS has three major categories of hog inventory: (1) live hogs available for sale; (2) developing animals; and (3) processed pork products. Management is confident that the wholesale price of processed pork products exceeds the cost to bring such products to market. However, spot market prices charged for live hogs sold to third parties have recently declined and are currently below the Company’s cost of producing these hogs. The decline in spot market prices is due to several factors, including the capture of the Big Bad Wolf, which led to an increased supply of pork. As of the second quarter ending September 2002, futures prices for lean hogs indicate a further decline before recovering late in the fourth quarter, as illustrated below: October 2002 $29.00 November 2002 $30.00 December 2002 $33.00 January 2003 $37.00 February 2003 $42.00 March 2003 $45.00 Farmer Joe asserts that the price decline reflected above is the result of seasonality. Currently, the cost of producing a live hog is $38/cwt ($38 per 100 pounds). Therefore, live hogs available for sale are carried...
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...When evaluating inventory impairment for the PIGS entity, it depends specifically on the character and composition of the inventory. The method used should clearly reflect the income of that period by applying the rule of lower of cost of market to each item or on a total inventory basis. If the company evaluates impairment by product line, there must be more than one major product that exists. This company does have more than one product line that exists consisting of: live hogs for sale, developing animals, and processed pork products. They seem to apply the accounting ideas of raw materials, work-in-process, and finished goods. The live hogs for sale and developing animals are stated to be processed and sold as the finished goods of processed pork products. Even though the most generally used method of lower of cost or market is to be applied separately to each item in the inventory, there is evidently only one-end product category of the total stock. Significantly, the only end-product of the inventory is processed pork products which apply the total inventory basis. There was a reduction in cost prices for certain inventory of live hogs and developing animals, but there was no loss in income since they expected to recover the cost of the inventory due to substantial evidence within the company. This specifically means that the company should apply the method on a total inventory basis because this specific inventory will enter the same category of finished product in a balanced...
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... |Definition of decision variables: | | | |X1= No. of fresh hams produced | | | |X2= No. of smoked hams produced on regular time | | |X3= No. of smoked hams produced on overtime | | |X4= No. of fresh pork bellies produced | | | |X5= No. of smoked pork bellies produced on regular time | | |X6= No. of smoked pork bellies produced on overtime | | |X7= No. of fresh picnics hams produced | | | |X8= No. of smoked picnics hams produced on regular time | | |X9= No. of smoked picnics hams produced on overtime | | | | ...
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...Case 04-4 Three Little Pigs, Inc. Research Response Three Little Pigs, Inc. (PIGS) is a provider of live hogs and pork products. They classify inventory into three distinct categories: live hogs ready for sale, developing animals, and processed pork products. They have always evaluated inventory at cost because the wholesale price has always exceeded the cost of bringing the products to the market. Now, due to several factors, PIGS believes that they may have a lower of cost or market issue related to valuing some of the hogs. 1) Does PIGS need to write-down inventory? 2) What approach should be used for the write-down (by category, total, end category, etc.)? Does PIGS need to write-down inventory? PIGS has evidence that predicted futures prices for the months of October 2002 – January 2003 will fall below the cost of production for a hog. Where there is evidence that the utility of goods will be less than cost the difference is recognized in the current period (ASC 330-10-35-1). A write-down is generally required unless the decline is due to seasonal price fluctuations (ASC 330-10-55-2). Though, Farmer Joe believes this is just a seasonal fluctuation, there is not enough evidence in the case to support that claim. There are no examples of this happening in prior years. The one reason that is given for the price decrease is the capture of the Big Bad Wolf, which led to an increase in the supply of pork. This appears to be an unusual event that would not happen...
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...Three Little Pigs Case I. INTRODUCTION Three Little Pigs, Inc.(PIGS) provides pork products, and sells a quantity of hogs produced to a number of wholesalers, retailers, and third parties across the United States. PIGS has three inventory departments which consist of live hogs ready for sale, developing animals, and processed pork items. Management has concerns about how to evaluate their different levels of inventory, and how they should account for impairment. The issue of impairment relates only to the live hogs and developing animals sold to third parties because management believes the internal pork products will be able to satisfy the cost of live hogs and animals processed internally. II. How should the company determine whether an inventory impairment exists i. Should inventory be evaluated for impairment under the lower of cost or market method on a total inventory basis? According to the FASB Accounting Standards Codification ASC 330-10-35-8 (inventory) " Depending on the character and composition of the inventory, the rule of lower of cost or market may properly be applied either directly to each item or to the total of the inventory (or in some cases, the total of the components of each category). The method shall be that which most clearly reflects periodic income." When a firm chooses to value its inventories based on the profitability of one inventory division it makes the assumption that all of the inventory divisions are...
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...Titan Union Accountants Titan Union Accountants Memorandum To: Farmer Joe, CEO, Three Little Pigs, Inc. (PIGS) From: Accounting Consultant Subject: Assessment of Impairment Date: January 1, 2003 I. Facts During this fiscal year, with the capture of the Big Bad Wolf, there is an increase of supply of pork and the market price of pork is on the decline. Although the market price for hogs is forecasted to stabilize within the year, Three Little Pigs, Inc. (PIGS) is dealt with the dilemma of whether they should impair their inventory of hogs, effective September 30, 2002. With three categories of hog inventory (live hogs for sale, developing animals, and processed pork products), PIGS is only considering to impair their inventories of live hogs and developing animals to be sold to third parties at market prices. Concerning processed pork prices, they are believed to be sufficient to cover production costs. II. Issues Management refuses to write off their inventory as they believe future stabilized prices will cover the losses from the previous quarters. However, specific scenarios must be evaluated to decide what the best solution is for PIGS to efficiently report their inventory. The issue is whether impairment should exist at September 30, 2002. If impairment shall exist, the question remains whether the impairment would be evaluated under the lower cost or market method on a total inventory basis, category basis, end product basis, or on an individual...
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...Brian Pun 3-22-15 The Joy Of Being In “The Joy of Being”, by Tarthang Tulku, the practice of Kum Nye is explained to allow the reader to practice the techniques allow for an understanding of one’s mind and senses. Kum Nye is also known as Tibetan Yoga, where the system of gentle movement exercises, breathing techniques, and self-massage, hope to harmonize and integrate body and mind, self and world. The exercises help reduce stress, balance emotions, and catalyze a deep healing process. Tarthang Tulku emphasizes the relationship between mind and our senses. Mind is referred to as “mind” because one concept is the objectification of things. Once we say “the mind” or “my mind” it limits our understanding. By referring it to as “mind” it separates it from us and allows for the flow of senses to energize our mind. Our senses open up ourselves and set up a foundation in order for us to experience certain things, but ultimately, mind is the key to change and transformation. (70,3) By realizing and cultivating our senses, it allows the flow of energy and the conversion of our emotions in order to feel wholesome and happy. Tulku emphasizes the conversion of our emotions into energy for our benefit because what we have done is limit ourselves with our language. By labeling things, it defines it and scripts it into law. (122,3). We cannot fully realize emotions or knowledge because we limit the full magnitude of what our experience is once we formulate words to describe...
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...com Ty Solomon University of Glasgow, UK Abstract The concept of soft power occupies a prominent place in International Relations, foreign policy, and security studies. Primarily developed by Joseph S. Nye, the concept is typically drawn upon to emphasize the more intangible dimensions of power in a field long dominated by overtly material (i.e. military) power. Recently, some scholars have reframed soft power — specifically the key notion of attraction — as a narrative and linguistic process. This literature, however, has downplayed some of the other deep-seated underpinnings of soft power, which this article argues lie in the dynamics of affect. Building upon the International Relations affect and aesthetics literatures, this article develops the concept of soft power as rooted in the political dynamics of emotion and introduces the concept of affective investment. The attraction of soft power stems not only from its cultural influence or narrative construction, but more fundamentally from audiences’ affective investments in the images of identity that it produces. The empirical import of these ideas is offered in an analysis of the construction of American attraction in the war on terror. Keywords Affect, discourse, emotion, narrative, Nye, soft power Introduction In her confirmation hearings in January 2009 before the US Senate Foreign Relations Committee, Secretary of State Hillary Clinton argued that to deal with a multiplicity of pressing global...
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...Joseph Nye in The Powers to Lead defines what he believes to be a leader and the skills necessary to be a leader. Greg Mortenson, the focus of Three Cups of Tea, fulfills Nye’s definition of a leader. After failing to summit K2, Mortenson stumbled upon a small Pakistani village and began a journey that would not only change his life, but the lives of thousand of children in Pakistan. While building schools in Pakistan, Mortenson has helped transform the mindset of an entire nation about the value of education. Nye says that two-thirds of Americans believe they are in “leadership crisis” (Nye pre). After the collapse of the sub-prime housing market and recent economic struggles, who can blame them? Those who are looking for a leader, however, need look no further than Greg Mortenson. Joseph Nye defines a leader as one who “helps create and achieve shared goals” (Nye 18). A leader must act in a triangular system that involves the leader, his followers, and the context in which the situation exists (Nye 21). Mortenson works effectively as a member of the leadership triangle. He acts as the leader and his followers are the towns, villages, and refugee camps that receive the benefits of his schools, water systems, and community centers as well as his assistants and the members of the Central Asia Institute. The context in which Mortenson exercises his leadership is as equally important as the other two parts of the triangle. As Nye quotes Karl Marx as saying, “Men make...
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...priceless lessons such as trying new foods can be challenging for many parents. As a God Mother of a very finicky three year old boy, it is implausible to get him to try new meals or snacks. Even after I sought guidance from his mother and mine for ideas, he still refused different refreshments, until I read to him and his kid sister Green Eggs and Ham and several others by Dr. Seuss. It happened by mistake when I realized that many of Dr. Seuss books teach children helpful lessons that most parents are feeble to because he uses fun graphics, rhyme, and entertains their imagination. When you actually analyze these books written by Dr. Seuss, it is not hard to see the main ideas of his stories through the pictures alone. Before I even open the book of Green Eggs and Ham, I see similarities of Amauri and the main character, The Black Hatter. They are wide eyed, with their nose up, and careful not to get too close to anything out of the normal, but yet curious enough to examine the beasty looking cuisine. On page twenty-three, there is a picture of Sam-I-Am enticing “The Black Hatter” into a box with a fox to try the green eggs and ham. This is an ironic metaphor of how parents try to get their children to eat their veggies. “I will let you watch TV with Daddy during dinner if you eat your green beans”. However, the bribe is not enough to get them interested. As I read this story to Amauir and his sister, I saw his expression felt the same as the poor Black Hatter. Rhyming is another...
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...Making a Fist In Naomi Shihab Nye’s poem “Making a Fist”, she looks back on her childhood memories and her obstacles in life. She asks her mom how you know when you are going to die, and her mom says when you can’t make a fist anymore. Later in life, she continues to make a fist just as a reminder that everything is okay. In the poem, Naomi uses figurative language, different points of view, and an interesting title all to tie in the story. The speaker in this poem is a woman reflecting back on her life when she was seven, and reminiscing the moment. The poem starts off in the perspective of a seven year old girl in the back seat of her mom’s car, when she discovers that you are dying when you can no longer make a fist. The poem continues on and develops to be in the perspective of the same girl, but much older. She reflects on the times when things were much simpler. The woman has matured, and to that day she remembers what her mom told her. When she says, “I, who did not die, who am still living,” she is saying that she has overcome obstacles since she was young, and that she will continue to overcome them. I think that the girl in this story is Naomi, the author of the poem. I think this because Naomi is such a personal writer, and the way she is with words just makes it seem so realistic. I think that the only way she could get across such an amazing message is that if it happened to her. Although, this message that she is getting across can be perceived in many different...
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...Bill Nye the Science Guy Back then when everything was so very tall, so much that all the cookies I wanted were always out of my reach, I hardly had anything to do in my life. I guess my mom was too correct when she said all I needed to do was grow up and be healthy; the most fun thing I remember myself doing is play around with those buttons on the television that my dad never seemed to touch. Of course, my actions resulted in the addiction to television that I have at this moment, but I’m thankful for my past self. If it wasn’t for my kid-self, I wouldn’t have found Bill Nye the Science Guy. When the playful music started in the introduction, I found myself liking the flying gewgaws and things (most of which were supposedly science-related), and the floating head that spun around with a smile. After the 5th occurrence of the name Bill, I started singing along, even in the sections that didn’t involve any lyrics. It was clearly a cleverly designed mind control scheme; I knew I was going to be compelled to see another episode later. Nevertheless, I simply had to continue watching. As soon as the theme song finished, there were scientists who talked about the topic for the day. I was filled with hope that I could be a scientist too because I could relate to those kids on the show. Then the man himself exploded out of the corner of the screen and started wildly talking about whatever he was talking about. I figured I was supposed to be excited, because he was talking...
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...Popular Culture and its Effect on Society Chris Lupkes SOC/105 Michelle Gardner March 04, 2013 The name Theodore Geisel, though one of the most famous contemporary writers, is rarely recognized even though his work is well known throughout the world. He has won three Academy Awards and a Pulitzer Prize for his work but people only recognize him by his pseudonym, Dr. Seuss. The Cat in the Hat is a book is about a Cat that moves in on two unsuspecting Children on a rainy day. He creates a whirlwind of misbehavior that the kids are at first powerless to stop. After the cat invites his friends into the house, they trash the place and try to get the kids to join in with all the mischief. After the boy asserts himself and orders the fun-loving cat to hit the road; that is where the story ends. This book was Theodor’s third book, the first of the six that the Cat appears in. The Cat in the Hat was perhaps the defining book of his career. The book only has 236 “new-reader” words in its vocabulary. When Ted’s first wife died in 1967, he married his old friend which only influenced the production of his later books. Theodore wrote the book because he felt that there should be more entertaining and fun material...
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...Julia DeWitt SC250-05: Science for Everyday Life Unit 9 Assignment August 05, 2014 When I hear the word “scientist” there are multiple things that run through my thoughts. I picture someone in a lab coat trying to discover a cure to a disease like cancer or the next plague that comes along. There is this image of dry ice coming out of test tubes and beakers surrounding them. Maybe even a bunch of stressed out yuppie looking guys who had way too much coffee, desperately trying to find the vaccine to stop the zombie apocalypse. I also picture Beaker from the Muppet show. He did a wonderful job forming an image of what a scientist probably was to me as a child. He was insecure and he made a mess. My cousin is a scientist so then there is an image of this very stern but sarcastic guy testing and testing and retesting. That image sounds so boring but I’m grateful there are brilliant minds like him out there. Scientist come in many different forms. They study and discover many different things. Over time there have been many types of scientist and they weren’t all wearing lab coats. Leonardo da Vinci was one I found interesting due to my love of art. He combined art and science in his sketches. He has amazing futuristic designs and even envisioned flight. Sadly he was a chronic procrastinator and had frequent disasters with his experiments of new techniques (Leonadoda-Vinci). Galileo Galilei was an Italian scientist who developed the telescopes and started to observe...
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