Walgreen Co. , the largest drug store chain in the United States, reported inventories of $7,213 million and $6,852 million in its February 28, 2014, and August 31, 2013, balance sheets, respectively. Cost of goods sold for the six months ended February 28, 2014, was $27,132 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 $2,200 million and $2,100 million at the end of the February 28, 2014, and August 31, 2013, periods, respectively. Calculate cost of goods sold for the six months ended February 28, 2014, assuming Walgreen used FIFO instead of LIFO.

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Asked Jan 17, 2020
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Walgreen Co. , the largest drug store chain in the United States, reported inventories of $7,213 million and $6,852 million in its February 28, 2014, and August 31, 2013, balance sheets, respectively. Cost of goods sold for the six months ended February 28, 2014, was $27,132 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 $2,200 million and $2,100 million at the end of the February 28, 2014, and August 31, 2013, periods, respectively. Calculate cost of goods sold for the six months ended February 28, 2014, assuming Walgreen used FIFO instead of LIFO.

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Expert Answer

Step 1

Cost of goods sold: Cost of goods sold are the decreased from inventory balance. It is the cost of goods that are sold in a period. It is shown as expense in the trading account.

Step 2

Compute cost of goods sold for six months ended February 28, 2014 assumi...

Accounting homework question answer, step 2, image 1
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