Oshkosh: Accounting for Inventory
Review the 2022 Oshkosh annual report and briefly answer the following questions. The
assignment should not exceed 1 page.
Oshkosh (OSK) designs, manufactures, and markets specialty vehicles and vehicle bodies.
Oshkosh operates across four main segments: Access Equipment, Defense, Fire & Emergency,
and Commercial. The company is headquarters in Oshkosh, WI and went public in 1985.
1. What are examples of specialty vehicles across the four product lines?
2. What type of inventory does Oshkosh hold and what is the value of inventory reported
on the Balance Sheet in 2022?
3. What accounting method does Oshkosh use for their inventory? What reasons do they
provide on why that method was selected?
4. Calculate the inventory turnover ratio, gross profit margin, and effective tax rate under
FIFO and LIFO for 2022. Describe what changed and how you would interpret the
change.
5. What other factors may influence Oshkosh’s inventory accounting method choice?
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