Complete the workbook, write the recommendation, test scenarios, and rehearse with peer critique
Complete the Workbook & Rehearse the Recommendation
Today your team finishes the analysis, writes the recommendation, and rehearses the explanation. By the end of class, your workbook should be complete and your team should be able to defend its method choice.
In Lesson 08, your team opened its assigned starter workbook, confirmed the Lesson 07 structure, and reviewed your group's beginning inventory, purchases, and sales data. You traced goods available for sale and drafted an early claim about which method might fit best.
Today you complete the remaining sheets, test your workbook, write your full recommendation, and rehearse with peer feedback. This is the most important work session of the project.
- Complete the inventory valuation for all four methods
- Write a recommendation backed by workbook evidence, not opinion
- Test your workbook with scenario checks to prove it works
- Rehearse your explanation so it is clear and defensible
- Audit and finish the Valuation sheet for FIFO, LIFO, Specific ID, and Weighted Average
- Confirm the MethodCompare sheet shows side-by-side results clearly
- Add or clear Checks sheet reconciliations and error flags
- Complete the Dashboard with visual summary
- Write the Recommendation sheet with claim, evidence, and risk
Continue working in the same starter workbook from Lesson 08. Use only your group's assigned workbook.
Group Starter Workbooks
- Group 1: unit07-group1-inventory.xlsx
- Group 2: unit07-group2-inventory.xlsx
- Group 3: unit07-group3-inventory.xlsx
- Group 4: unit07-group4-inventory.xlsx
File Naming
Your workbook should be named: Unit07_Project_GroupX.xlsx
If your workbook is missing, re-download your group's starter workbook and rebuild from your Lesson 08 notes.
Each sheet below must be complete before you write your recommendation.
Valuation Sheet
- Calculate ending inventory and COGS for FIFO
- Calculate ending inventory and COGS for LIFO
- Calculate ending inventory and COGS for Specific Identification
- Calculate ending inventory and COGS for Weighted Average
- Show the formula: BI + Purchases − COGS = EI for each method
MethodCompare Sheet
- Side-by-side table of all four methods
- Include COGS, Ending Inventory, and Gross Profit for each
- Highlight which method produces the highest and lowest COGS
- Note which method best fits your business scenario
Checks Sheet
- Verify: BI + Purchases = COGS + EI for each method
- Flag any negative inventory or impossible values
- Test with a scenario change (e.g., one more purchase)
- Document what passed and what failed
Dashboard Sheet
- Visual summary of method comparison
- Key numbers: COGS, EI, Gross Profit by method
- Clear labels so a non-accountant can read it
- One sentence: what the data shows
Every team must write a recommendation on the Recommendation sheet. It must follow this exact structure:
1. Claim
One sentence naming your recommended inventory method and why it fits this business.
Example: "We recommend FIFO because it matches the physical flow of perishable goods and produces the most reliable COGS for this business."
2. Evidence
At least three specific numbers cited from your workbook that support the claim.
Example: "FIFO COGS is $12,450 (Valuation sheet, cell B15), which is $340 lower than LIFO. Our inventory turns over every 18 days (Dashboard sheet), making FIFO the most accurate reflection of actual costs."
3. Risk
One limitation, downside, or assumption that could weaken your recommendation.
Example: "If purchase prices drop sharply next quarter, FIFO will overstate COGS relative to replacement cost. We recommend reviewing the method quarterly."
4. Defense
One sentence explaining why the recommendation still makes sense despite the risk.
Example: "Even with price volatility, FIFO remains the best match for this business because inventory turns over before prices can shift significantly."
Before you finalize your recommendation, test your workbook with these scenarios:
Test 1: Reconciliation Check
Does BI + Purchases = COGS + EI for all four methods? If not, find the error.
Test 2: Edge Case
What happens if you add one more purchase at the end of the period? Do all methods update correctly?
Test 3: Impossible Values
Does your Checks sheet flag negative inventory or COGS greater than goods available?
Document what passed and what failed. Fix any failures before writing your recommendation.
- Complete Valuation (25 min): Finish all four method calculations
- Build MethodCompare & Checks (15 min): Side-by-side table and reconciliation checks
- Complete Dashboard (10 min): Visual summary of findings
- Write Recommendation (15 min): Claim, evidence, risk, and defense
- Scenario Testing (5 min): Run the three tests above
- Peer Critique (10 min): Exchange workbooks with another team and give feedback
- All four methods calculated on the Valuation sheet
- MethodCompare sheet shows side-by-side COGS, EI, and Gross Profit
- Checks sheet passes reconciliation (BI + Purchases = COGS + EI)
- Dashboard has a clear visual summary
- Recommendation includes claim, three cited numbers, risk, and defense
- Scenario testing documented with pass/fail results
- Peer critique completed with at least one strength and one revision target
- Workbook Completeness (35%): All sheets present and populated with correct calculations
- Recommendation Quality (30%): Clear claim, cited evidence, risk identified, defense provided
- Testing & Validation (20%): Checks pass, scenarios documented, errors fixed
- Peer Critique (15%): Constructive feedback given and received, revision attempted
Exchange your workbook with another team. Review their recommendation and workbook using the criteria below. Provide at least one specific strength and one specific revision target.
Unit 07 Milestone 2 — Inventory Recommendation
Project by Classmate
Focus on: model accuracy, evidence quality, clarity of recommendation, and readiness for final presentation.
Lesson 10: Final polish, presentation, and submission. Your team will defend your method recommendation to an audience. Use the feedback from today's peer critique to strengthen your workbook and presentation notes before then.
Bring your completed workbook, your recommendation, and any notes from peer feedback to the next session.