Question

Walgreens Boots Alliance, Inc., reported inventories of $2,280 million and $2,362 million in its August 31, 2017, and August 31, 2016, balance sheets, respectively. Cost of goods sold for the year ended August 31, 2017, was $29,364 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 $286 million and $266 million at the end of the August 31, 2017, and August 31, 2016, periods, respectively.

Calculate cost of goods sold for the year ended August 31, 2017, assuming Walgreens used FIFO instead of LIFO

Cost of good sold=

Answer 1

	Amount($)
	in million
Cost of goods sold as reported	29,364
Add: Higher inventory at the end of 2016	266
Less: Higher inventory at the end of 2017	-286
Cost of goods sold	29,344