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10 November, 04:43

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.

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  1. 10 November, 06:33
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    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
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