Walgreens Boots Alliance, Inc. reported inventories of $8,678 million and $6,076 million in its August 31, 2015, and August 31, 2014, balance sheets, respectively. Cost of goods sold for the year ended August 31, 2015, was $76,520 million. The company uses primarily the LIFO inventory method. A disclosure note reported that if FIFO had been used instead of LIFO, inventory would have been higher by $2,500 million and $2,300 million at the end of the August 31, 2015, and August 31, 2014, periods, respectively.

Question

Tough Guy

Business

11 November, 11:03

Walgreens Boots Alliance, Inc. reported inventories of $8,678 million and $6,076 million in its August 31, 2015, and August 31, 2014, balance sheets, respectively. Cost of goods sold for the year ended August 31, 2015, was $76,520 million. The company uses primarily the LIFO inventory method. A disclosure note reported that if FIFO had been used instead of LIFO, inventory would have been higher by $2,500 million and $2,300 million at the end of the August 31, 2015, and August 31, 2014, periods, respectively.

+2

Answers (1)

Know the Answer?

Calvin · Answer 1

The question is missing requirement. In other words, the question is difficult to answer in its current state, as a result find the requirement below:

"Calculate cost of goods sold for the year ended August 31, 2015, assuming Walgreens used FIFO instead of LIFO. (Enter your answer in millions.) "

The answer to this question is $76,320

Explanation:

In arriving at the answer as given above, the approach is to use the formula for calculating costs of goods sold which is as follows:

Opening stock+Purchases-Closing stock

If we work backwards taking the costs of goods sold of $76250 as our purchases since we now have additional information on closing inventories at 31st August 2014 and 2015 respectively.

$

Opening inventory as given 2300

Costs of goods sold given 76520

(that needs adjustment)

Closing inventory (2500)

Adjusted costs of good sold $76320